Assignment On

2012

An overview of managerial operations of Pepsico

Group: Lighthouse
We show the path

University of dhaka

Letter of Transmittal
December12 Santus Kumar Deb Assistant Professor Department of Tourism & Hospitality Management University of Dhaka

Subject: Submission of assignment on an overview of managerial operations of Pepsi.

Dear Sir, It is a great pleasure for us to submit an assignment on an overview of managerial operations of Pepsi under the course named Management Fundamentals. In this assignment, we took attention on the management process and mission, vision and objectives of Pepsi. This type of assignment completion was not possible without your guidance and continuous cooperation. We are specially giving thanks to you in this regard. We hope that through this assignment we have been able to demonstrate the knowledge learned from your course. Thank you for allowing us to do the assignment on the above mentioned topic. We sincerely hope that this paper may meet your expectations. Sincerely yours, S. M. Siraj Uddin Chowdhury Md. Marufur Rahman Sikder Sushanta Chakraborty Shegufta Nasrin Akter Md. Rafiqul Amin Md. Shahidul Islam Sumaiya Binte Delwar 71209033 71208035 71208033 71208001 071107001 071107063 71208031

Acknowledgement
We would like to express our special gratitude to our honorable course teacher Mr. Santus Kumar Deb for providing us much needed suggestions to prepare this assignment. His inspiration, kind direction helped in building courage and confidence to face the practical situations.

His instruction and encouraging attitude and artistic technique of giving knowledge helped us in an outstanding way to worded out this task.

We are also grateful to the authors of those books, web resources from where we have received necessary help in preparing this assignment.

We have prepared the assignment based on knowledge, ideas and understanding of our assigned task. We tried to make it precise and concise as well as informative. Even then, if there remains any shortcoming that is our own.

At last, we would convey out thanks to all of our well-wishers for their voluntary help and cooperation.

Introduction & History

Pepsi (stylized in lowercase as pepsi, formerly stylized in uppercase as PEPSI) is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961. Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace CocaCola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.

Caleb Bradham & Pepsi-Cola

Caleb Davis Bradham was born in Chinquapin, North Carolina on May 27, 1867. He graduated from the University of North Carolina at Chapel Hill and attended the University of Maryland School of Medicine, circa 1890. He dropped out of medical school because his fathers business was going bankrupt. After returning to North Carolina, Bradham taught public school for about a year, and later opened a drug store on the corner of Middle and Pollock Streets in downtown New Bern. He named the store Bradham Drug Company and, like many other drug stores of the time, housed a soda fountain. In 1893, Bradham invented Brads Drink, a blend of carbonated water, sugar, pepsin, kola nut extract,

vanilla and rare oils at this location. On August 28, 1898, Caleb renamed his drink Pepsi-Cola, after a combination of two ingredients, pepsin and cola. He believed his drink was healthy as it aided in digestion much like the pepsin enzyme does. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor in Newark, New Jersey that had gone broke. His assistant James Henry King, a young African American was the first to taste the new drink. In 1902, Bradham launched the Pepsi-Cola Company in the back room of his pharmacy and on December 24, 1902 the Pepsi-Cola Company was incorporated in the state of North Carolina. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. At first, he mixed the syrup himself and sold it exclusively through soda fountains. That first year, Bradham sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also expanded his operation by opening a second Drug Store at the corner of Middle and Broad Streets. Caleb soon recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. In 1905, Bradham began selling Pepsi-Cola in six-ounce bottles and awarded two franchises to Charlotte and Durham, North Carolina. The following year, 15 franchises were awarded, with another 40 by 1907. In 1910 there were 250 franchises in 24 states and in January of that year the Pepsi Cola Company held their first Bottler Convention in New Bern. Caleb Bradham enjoyed 17 years of success with Pepsi-Cola. However, he had gambled on the fluctuations of sugar prices during WWI. He believed that sugar prices would continue to rise, but they fell drastically, leaving him with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923 and its assets were sold to Craven Holding Corporation for $30,000.

Timeline of Bradham
1898 - One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo. 1902 - The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal. 1903 - "Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation. Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion." 1904 - Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons. 1905 - Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.

Pepsi receives its new logo, its first change since 1898. 1906 - Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink." There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup sales rise to 38,605 gallons. The federal government passes the Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities, claimed they already met federal requirements. 1907 - Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup. Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons. 1908 - Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola. 1909 - Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." 1910 - The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina. 1920 - Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923 and its assets were sold to a North Carolina concern; Craven Holding Corporation for $30,000. Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

Our Mission
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.

Our 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." Our vision is 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.

Pepsi-Cola Values
Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make.

Our Commitment
We are committed to delivering sustained growth through empowered people acting responsibly and building trust.

What It Means
Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions

will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own. Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.

Guiding Principles
We uphold our commitment with six guiding principles. We must always strive to: Care for our customers, our consumers and the world we live in. Sell only products we can be proud of. Speak with truth and candor. Balance short term and long term. Win with diversity and inclusion. Respect others and succeed together.

Objectives of Pepsi-Cola Performance

The performance of PEPSI Company, including the financial results achieved, is the foundation for the entire do. The objective agenda has four components Performance, Human, Environmental and Talent Sustainability but it starts with and is made possible by a consistently strong performance across the business units, the brands, and in the markets in which it operates.

Human Sustainability
As part of Performance with Purpose, we have committed to providing more food and beverage choices made with wholesome ingredients that contribute to healthier eating and drinking. This means increasing the amount of whole grains, fruit, vegetables, nuts, seeds and low-fat dairy in our global product portfolio. It also means reducing the average amount of sodium per serving in key global food brands, in key countries, by 25 percent by 2015 (with a 2006 baseline); reducing the average amount of saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020 (with a 2006 baseline); reducing the average amount of added sugar per serving in key global beverage brands, in key countries, by 25 percent by 2020 (with a 2006 baseline).

Environmental Sustainability
PepsiCo is fully committed to protecting the earth's natural resources through innovation and the efficient use of land, energy, water and packaging in all our operations. As a dynamic global business, we rely on the earth's natural resources every day. And as we grow our businesses in developed countries and expand in developing and emerging countries, we strive to use only methods and tools that are scientifically proven, socially responsible and economically sound.

Talent Sustainability
As PepsiCo continues its journey of sustainable growth, our ability to innovate and grow depends on the talent in our ranks, which is why we are investing in our associates to develop their talent and leadership skills to achieve success, while creating employment opportunities in the communities we serve.

Marketing Strategy of Pepsico

PepsiCo's performance and purpose are not separatethey each are linked inextricably with the other.

The brand/product portfolio is balanced and offers consumers choices, from "treats to healthy eats" The future: innovation across all categories with a focus on maintaining/growing core businesses, while delivering a robust pipeline of new products outside the core

PepsiCos marketing strategy for the purpose of growth position:

Build and extend our macro-snacks portfolio Sustainably and profitably grow our beverage business worldwide Unleash the power of the Power of One Expand the nutrition businesses Cherish our PepsiCo associates Ensure excellent financial performance

PepsiCos marketing strategy for financial performance

Geographic flexibility: PEPSI is such a product which is found at everywhere of the world, that means there is no barrier to the entry of Pepsi product. Portfolio flexibility: The ingredients of Pepsi will be integrated according to the culture of the countries. Go-to-Market flexibility: Pepsi should be available in the market so that the customers can easily get that product. Importance to retail customers: The retailers have to convince the retail customers to purchase it as a healthy drink. Responsible marketing & advertising: PepsiCo is committed to responsible advertising practices and ensuring healthy choices. Management strength: The implementation of the above strategies is not possible without the supervision of management team.

PespsiCo Marketing Mix

In 1965 Herman W. Lay of the Frito-Lay Company and Donald Kendall of Pepsi-Cola formed PepsiCo. In 1986 operations were combined under PepsiCo Worldwide Foods and PepsiCo Worldwide Beverages. In 2001 PepsiCo merged with Quaker Oats to form a $25 billion company. PepsiCo restructured in 2007 dividing the company into three units food in the US, Drinks concentrated in the US and Food and Drinks marketed abroad. In November 2007, PepsiCo announced a restructuring initiative to split the company into three units, one for food in the US, one for beverages in the US and one for food and drinks abroad.

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Product
Beverage Products - Diet Pepsi, Gatorade, Mountain Dew, Thirst Quencher, Tropicana, Aquafina Bottled Water, Sierra Mist. Savory Food Snacks - Fritos Corn chips, Cheetos, Ruffles Potato Chips, Lays Potato Chips, Tostitos, Doritos. Other Food Products - breakfast cereals, cakes and cake mixes.

PepsiCo recently created Baked Snacks North America Business Unit to meet consumers interest in more nutritious snacks and foods.

Price
Expenses related to transportation, ingredients and labor continue to pressure the beverage industry toward price increases. PepsiCos drink pricing strategies may be heavily influenced by its working relationship with Wal-Mart whose low price themes put pressure on PepsiCo to hold down prices. The company strives to cut or maintain current prices by cutting overhead and re-engineering the manufacturing process. PepsiCo is expanding its use of inexpensive and recyclable plastic bottles; nevertheless the company has instituted some price increases in recent years, specifically in its overseas markets such as New Delhi and Duba.

Place
PepsiCo is primarily a US based company with approximately 52% of its revenues located in the states. 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.

The company is also acquiring Russias leading Juice Company, Lebedyansky, and V Water located in the United Kingdom.

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Promotion
PepsiCo instituted a so called Pepsi Stuff promotion whereby customers could accumulate Pepsi Points from buying various products these points could be used to by other products, most recently AmazonMP3. A recent promotion involving the NY Yankees was not well received when not enough free tickets were made available. In 2008 PepsiCo employed Tiger Woods to promote a Gatorade brand called Gatorade Tiger.

PepsiCo continues is promotional association with the NFL and the Super Bowl specifically marketing Pepsi and Doritos. In 2009 Pepsi launched its Pepsi Throwback campaigned offering a drink with the sugar content of its original product.

People
Indra K. Nooyi is the President of PepsiCo in addition to the companys CFO

Recently the Board of Directors elected Steven S Reinemund chairman of the board and chief executive officer. PepsiCo fosters a corporate culture that values employees and emphasized diversity in the workplace. PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by Working Mother magazine PepsiCo is recognized at two events for its dedication to Talent Sustainability and dedication to Asian American employees2009 Best Companies for Asian Pacific Americans from Asian Entrepreneur, Top 10 Companies for Asian Americans from AMBA PepsiCo has won the 'Workplace Excellence' Award at Out & Equal Workplace National Summit PepsiCo is listed in the top 20 'Ideal Employer MBA Ranking' in Fortune magazine

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Pysicial Evidence
PepsiCos website provides a wealth of information about the company including the firms rich history and manufacturing process. PepsiCo is an industry leader in packaging - helping to promote and implement standards for sustainable packaging. PepsiCo has a packaging philosophy: reduce, reuse, recycle, remove and renew.

Process
PepsiCo is in the process of removing high fructose corn syrup (HFCS) from both the traditional.

The Frito-Lay department will soon produce Lay's Kettle with natural flavors, and to boost the whole grain and fiber content, respectively, of its Tostitos and Sun Chips brands. Flavor concentrates are shipped from special Pepsi-Cola manufacturing plants, The bottles and cans that will eventually be filled with Pepsi are manufactured elsewhere, and shipped to Pepsi plants wrapped and sealed for protection, Labels, cartons, caps, the carbon dioxide used to carbonate soft drinks and other supplies are also produced for Pepsi by other companies, Once on the belt, cans are part of an enclosed, controlled environment that keeps them sanitary and helps ensure quality throughout the filling process, Pepsi-Cola takes special care to purify the water it uses a procedure that involves careful treatment, filtration and purification, Pepsi-Cola flavor concentrate is carefully combined with sweeteners and other ingredients in large stainless steel mixing tanks. Quality control audits performed by specially trained technicians are a critical part of the manufacturing sequence, In the last step of the manufacturing process, as the now-rinsed cans reach the filler, they're reinverted, immediately filled and the lid is applied at an average speed of 1,200 cans per minute.

SWOT Analysis PepsiCo

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

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Strengths, Weaknesses, Opportunities and Threats (SWOT)

Strengths
Branding - One of PepsiCos top brands is of course Pepsi, one of the most recognized brands of the world, ranked according to Interbrand. As of 2008 it ranked 26th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lays 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 PepsiCos 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 - PepsiCos diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1,000 million. PepsiCos 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.

Our marketing qualification

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Weaknesses
Overdependence on Wal-Mart - Sales to Wal-Mart represent approximately 12% of PepsiCos total net revenue. Wal-Mart is PepsiCos largest customer. As a result PepsiCos fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a

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higher profit margin than national brands. Wal-Marts 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 PepsiCos 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. Image Damage Due to Product Recall - Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves. This followed incidents of exploding Diet Pepsi cans in 2007. Such occurrences damage company image and reduce consumer confidence in PepsiCo products.

Opportunities
Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russias 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.

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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 PepsiCos primary competitors. But others include Nestl, 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.

Brand Portfolio
Our products can be found in nearly 200 countries around the globe. PepsiCo is a global food and beverage leader with a diverse product portfolio that includes 22 brands that each generate more than $1 billion each in annual retail sales. Take a closer look at the brands and products that make up the PepsiCo portfolio.

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Management Functions of Pepsi

Planning
GOAL: to beat competitors and to improve quality Centralized decisions Traditional goal setting technique Formal Planning Handle unusual situations by conducting special meetings with employees

Organizing
Organizing is defined as: Determining what needs to be done How it will be done Who is to do it

Leading
Leading involves: Motivating Working with and through other people to accomplish organizational goals High level of motivation Bonus and salary packages 5Kg sugar on Eidain Profit Allowance Travelling allowance and daily allowance.

Controlling
Controlling is defined as: Monitoring

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Comparing Correcting work performance

Current International Scenario of Pepsi

Headquarters: Purchase, N.Y., USA 2011 revenues: $66 billion International slogan: "Change the game" (2011present for India, Bangladesh & Pakistan for the 2011 Cricket World Cup)

In 2008, PepsiCo (PEP, Fortune 500) launched its "One Simple Thing" program, which gives staffers the option to add a personal goal -- like exercising more often or eating healthier foods -- to their performance review process. Employees are asked to deliver against this goal, just as they would with any work-related goal.

Agreements with Food Giants

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PepsiCo has an exclusive agreement with the fast food giants Taco Bell, KFC and Pizza Hut to only sell Pepsi products. PepsiCo is exploiting its unique relationship with these restaurants to gain more recognition and popularity for its various products. Another important aspect of surviving in the food and beverage industry is the requirement to adequately advertise products. By doing this, companies attract the attention of their prospective consumers and maximize brand awareness. The more the consumers visually see the product, the more likely they are to buy and use that specific product. Brand loyalty is vital to surviving in this industry. The companies' goal is to ultimately reach the point where their customers are consistently and faithfully using their products.

Encouraging the Youth Pepsi brand concept is "infinite longing" encouraging young people to positive attitude towards life, the implication is for young people, opportunities and ideal space has infinitely many, they can enjoy to reverie and pursuit. To promote this concept, Pepsi brand choices based on football and music and culture as a carrier, in advertising and public welfare activities, with Jackson, "Britney" Spears, Aaron Kwok, Faye Wong, Kelly Chen, Sammi Cheng, Jay Chou Beckham, Rivaldo, Roberto Carlos, Fan Zhiyi, Li Weifeng, Qi Hong and so a large number of stars as brand ambassador, advocated strongly advocate the spirit of enterprise culture, so that Pepsi's "new generation of choices" and praised "happy freedom" Style widely, especially young people's understanding and acceptance. Ranbir Kapoor, Pepsis brand ambassador (currently in India), said, The Game by Pepsi is a rocking concept and we were confident from the beginning that it would connect instantly with the Youngistaanis. I am delighted with the response and am already looking forward to whats next for me and the rest of the Youngistaan from Pepsi.

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Pepsi brings cricket & football together in new campaign

After "changing the game" recently with its first football campaign in the country featuring actor Ranbir

kapoor, cola giant Pepsi is back in Pepsi's new campaign features not just its usual cricket faces Mahendra Singh Dhoni, Virat Kohli, Suresh Raina and Harbhajan Singh; but also global football stars Didier Drogba, Frank Lampard and Fernando Torres, all of whom represent Barclays Premier League side Chelsea.

In the campaign, the Indian cricketers challenge the footballers to a game of cricket to win Pepsi, while the footballers show them how to play cricket - football style. PepsiCo India said, Being a true soulmate of the youth, Pepsi continues to bring to life Youngistaans passions in newer and refreshing formats. We celebrated the unorthodox face of cricket last year and gave the T20 twist to football this year; now we are bringing together both these sports on one common platform. Featuring the biggest names from the world of cricket and football, the campaign reflects our commitment to both the sports in our signature, Change the Game way. The campaign is supported by a 360-degree approach including on-air, outdoor & on-ground initiatives; special edition packaging featuring and digital engagement programmers. Acquisition in Book Value or below Another favorable scenario for PepsiCo would involve the acquisition of a beverage or processed food manufacturer for book value or below. This scenario is somewhat realistic due to the fact that many smaller snack companies incurred sizeable debt obligations in the mid 90s when the U.S. economy was thriving. These same companies are experiencing smaller profit margins due to higher commodities prices and increasing competition from giants such as Frito-Lay. All these factors combine to make the smaller companies prime targets for acquisition for PepsiCo. Pepsi also favors partnerships as a method of controlling risk when entering new markets.

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Adulteration of products Pepsi and Diet Pepsi had a scare in 1993 when consumers in more than 20 states found syringes in the brand's soda cans. The reports, which quickly hit national news, created a panic among consumers. But it wasn't Pepsi's fault. Authorities eventually found video of a woman in Colorado who had been inserting syringes into cans. Another equally dismal scenario for PepsiCo would be product contamination or product tampering. This very scenario occurred to Tylenol and it never recovered from the bad press. It also occurred to both PepsiCo and Coca-Cola in India. Their respective products were even banned in some Indian states for a short while. The culprit in this instance was pesticide contamination. On a related note, Frito-Lay, sensing the public's mistrust of genetically modified produce, instructed its suppliers to refrain from using genetically modified corn. If it had not done so it is highly probable that the snack food giant would have suffered a public relations nightmare.

PepsiCo CEO Indra Nooyi took the wheel in 2006

Nooyi set a goal to expand its "good-for-you" food divisions. , she was aware of this trend and decided to grow the company's healthy food business. In 2010, those products -- Quaker Oats, Tropicana, and the Frito Lay Natural line -- contributed $10 billion to annual revenue, according to CNN Money. Her goal was to have these products account for $30 billion in revenue by 2020. But as investors said the CEO is too focused on this goal, when it should have been focused on battling Coke. Despite the recent health trend, none of the brand's products are as high-profile as Pepsi itself.

March 2011 -- Pepsi fell from the No.2 spot

Ever since, Coca-Cola has reigned supreme with Classic in the No.1 sales spot and Diet Coke as No.2. According to MSNBC, Diet Coke sold 927 million cases in 2010, compared to Pepsi's 892 million. Of course, this pales in comparison to the 1.6 billion cases of regular Coke that were sold int he same year.

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Diet Coke's rise reflects the growing trend toward diet drinks. Today there are four diet drinks among the top 10 drinks (versions of Coke, Pepsi, Mountain Dew, and Dr. Pepper) whereas there were only two on the list 10 years ago. PepsiCos Global Strategy Pepsi Co's competitive model has evolved from being a beverage company such as Coca-Cola and into a processed food manufacturer more similar to Kraft. This means that PepsiCo is less susceptible to the market pressures that would normally affect the revenues of a soft drink company. It also means that PepsiCo must devote significant funds to advertising expenditures to ensure that its products gain high visibility. PepsiCo currently dominates the snack food sector and it enjoys a 34% share of the carbonated soft drink market in the U.S. Frito-Lay North America has remained perched in the number one position in snack foods for many years now. PepsiCo acquired Quaker Oats in 2005 and this acquisition in turn strengthened its position in the energy drink and health food sector. Gatorade is the top-selling sports drink and Quaker Oats markets a large variety of snacks, cereals and energy bars. Aquafina, the bottled water, is also the top-selling bottled water brand in the U.S. The Aquafina brand has proven to be highly successful and PepsiCo has recently begun marketing some variations such as: Aquafina Sparkling, Aquafina Alive and Aquafina plus+. Pepsi's revenue, adjusted for foreign exchange, increased more than 8% in the fourth quarter from the same period a year ago, as the Frito-Lay North America and PepsiCo International segments delivered strong growth. However, adjusted operating profit fell to around 11% from 14% in the year-ago quarter, and the solid performances overseas and from Frito-Lay were partially mitigated by weakness in PepsiCo Americas beverages. Pepsi underperformed rival Coca-Cola KO in North America, as the firm's year-over-year rate of volume decline accelerated to 6% in the fourth quarter, from around 3% in the previous quarter. PepsiCo has been pursuing a differentiation strategy but it would do well to focus instead on a low-cost strategy. Consumers are focusing more on value in the current recessionary environment. For example, consumers will continue to buy more multiservice products from grocery stores at the expense of moreprofitable single-serve items, and this is likely to damage PepsiCo's operating margins in the near term. While growth in the snack business has held up well so far, partly due to the diversification to revenue that the segment offers, the economic downturn will eventually take its toll on snack results as well. Despite the short-term challenges that the company is likely to face, PepsiCo's broad portfolio of products will stand the firm in good stead in the face of a challenging short-term environment. With its direct store delivery distribution network and strong portfolio of brands, PepsiCo is still one the strongest of the consumer staples companies.

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Pepsi Cos activities in Bangladesh

Save the Children In 2009, PepsiCo Foundation provided a three-year, $5 million grant to help promote the survival and well-being of children living in rural India and Bangladesh. With PepsiCo Foundation's funding, Save the Children can build on its local and international expertise to design and implement community-based programs that improve the health and nutrition of children under age five. In Bangladesh, Save the Children led a successful pilot study using ready-to-use food that is specially formulated to help treat children's acute malnutrition. Findings showed a community-based approach (nonclinical or hospital setting) carried out by community health workers is an effective method for addressing severe acute malnutrition in children under five years old. The results of this study are influencing policy and practice across the country. Additionally, the organization is introducing market-led, income-generation activities with women, so families can create and sustain improvements to food security and increase their livelihoods. Save the Children is also building the capacity of local communities and other nongovernmental organizations in India and Bangladesh so the benefits delivered can be sustained over the long term. The combined global resources of Save the Children and PepsiCo Foundation are helping to make a profound difference in the lives of 545,000 children under age five, mothers, and pregnant and lactating women in India and Bangladesh. The Foundations strong partnership with Save the Children has reached approximately 850,000 people in India and Bangladesh to help improve health and nutrition. And the Foundations partnership with the World Food Program (WFP), which leverages PepsiCos supply chain expertise to improve the WFPs logistics efficiency, will indirectly benefit approximately 90 million people served by the program. Safe Water Network Grant The initiative led by the Safe Water Network (SWN) and supported by the PepsiCo Foundation involves bringing safe water to households and villages in India, Ghana and Bangladesh. Working with nongovernmental and community organizations and the private sector, SWN will address the critical water needs of nearly a quarter million people by supporting the development and implementation of water systems that will reliably provide neglected populations with safe, affordable water. The methods include rainwater harvesting, village-level water systems and water kiosks. Safe Water Network programs also work to mobilize and educate communities to raise awareness and provisions to create and maintain permanent clean water supplies. SWN will receive $3.5 million during a three-year period based on annual progress.

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Pepsi change the game third activation event 61 cricket fans won tickets to world cup matches, where one supreme winner went to Mumbai for the Final of ICC Cricket World Cup 2011. Pepsi have changed the game of the cricket enthusiasts by creating an opportunity to win tickets to ICC Cricket World Cup Matches. In the midst of this cricketing mayhem, where Bangladeshi cricket lovers are going crazy trying to obtain match tickets. Among the 60, 8 lucky winners will have the chance to go to the field on the drinks trolley during the drinks break. Apart from match tickets everyone received consolation prizes for participation in the engagement session.

Unique photograph opportunity with the ICC World Cup 2011 trophy

The ICC Cricket World Cup 2011 frenzy was building up across the world. To add to the World Cup excitement in Bangladesh, Pepsi brought the ICC World Cup 2011 trophy to Bangladesh; so that thousands of cricket lovers could fulfill their dreams by getting a closer look at the trophy and take pictures with it. Pepsi, being the official global partner of the ICC World Cup 2011 has brought exciting new campaigns for its consumers. This trophy activation was brought by Pepsi to the cricket fans of the nation as part of the hugely popular campaign Pepsi Change the Game. On the 9th of February, a massive crowd lined up at the atrium of Star Cineplex at Bashundhara City. Cricket lovers stood in line since early morning to catch a glimpse of the coveted trophy. Countless Pepsi consumers got a chance to take pictures with the trophy. Later on the trophy was taken to other major youth hang outs across the city through tight security. Mr. Khurshid Irfan Chowdhury, Executive Director, Mr. Arif Hossain,

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Market Development Manager of Transcom Beverages Limited and Mr. Prateek Sabharwal, Country Manager of PepsiCo Bangladesh were present when the trophy was unveiled in Star Cineplex of Bashundhara City. The trophy was taken to Plaza A.R, Abahani field and then to the BCB office. Everyone was delighted to participate in this incredible game changing moment and to have fulfilled their dreams.

Challenges
By 2050, the world's population is expected to number nine billion. This population growth presents complex challenges and trade-offs for both the health of people and the planet. Even by 2030, it's predicted that energy and food demand will be 45 percent and 50 percent higher, respectively, and twothird of the earth's population will live in water-stressed countries.

As a food and beverage company that both depends on food production for their raw materials and seeks to deliver nutritious, delicious foods and beverages to their consumers, they need to integrate and balance their goals in human and environmental sustainability in order to manage future resource risk. It is clear that the health of the planet and the health of people are becoming increasingly intertwined. Progress in achieving some of our environmental and health goals requires complex trade-offs to ensure that one set of goals doesn't advance at the cost of others.

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All of us know that Pepsi-Cola and Coca-Cola have had the competition for about 80 years. Although Pepsi-Cola have won several times during this competition, the market share of Pepsicola is a little bit smaller than Coca-Cola. There is another threat nowadays. Some local cola such as FeiChang and FenHuang cola have taken their feet in the market. Their advertisement says "Chinese people drink our own cola". It is well known that China is a united and patriotic nation. So these words can really catch Chinese people's heart. And these local cola's flavor is more suitable for Chinese. So it cannot be ignored. But we cannot consider things just on one side. Still there are some disadvantages existing in Pepsi-Cola The pipe-chat 3 showed that most of the people like the package of Coca-Cola best.48% people like it. It has only 32% people prefer the package of Pepsi-Cola. So the design of Pepsi-Cola's package is not as attractive as Coca--cola. It still needs to be improved. We suggest that the package needs to be designed more colorful to attract people's attention.

Opportunities:

Pepsi has stayed in this market for almost one century. So they are so experienced and stationed in people's mind deeply. Now no one doesn't know the brand Pepsi-Cola Whenever the name Pepsi is heard, people will conjure up the image of fresh and cool drink.

Pepsi still has the opportunity to enlarge its market share because the cola in the market is quite monotonic. Most of the end user is young people. There are still some people who do not like the taste of the cola. So we can try to provide some other taste of cola such as adding some lemon juice. We can change the flavor in order to meet different taste of different people.

Pepsi also comparing with the competitors and find their disadvantages to update its own quality, flavor and also package promptly in order to satisfy the consumers' need. This is the biggest advantage of Pepsi Company.

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Pepsi is such an experienced powerful global company, which has a basic of a great fund. So it has the ability to place an idle sum of money to the promotion. We can see that the advertisement of Pepsi-Cola is so attractive. It also invited the top famous people to advertise for it. The advertisement is so elaborate and attractive so that Pepsi gained the special prize of the advertisement Granny.

Recommendation: Being in such a tense competition (just like the brand Coca-Cola), Pepsi-Cola should not take the direct and tough attack upon it. There is no good to either side. The best wad is to keep a peaceful relationship with it and always compare with others; we should find their disadvantages and show our advantages on this aspect. Then by and by, the people would think ours is betted Of course the most important rule is to improve ourselves to meet the consumers. Pepsi-Cola should improve the design of the package first. As it is advertised as" the choice of new generation", the design must be looked young and fresh. So the color should be more sharp and attractive. As the flavor and ingredients of cola in the market are similar and the most active consumer is the young people, we can diversify the Pepsi production to meet the different need of the consumers. That is customer-orientated. Besides the Diet cola for the ladies, we can have many other new choices. For example, we can create a new kind of cola more suitable for children. Maybe we can add the Vitamins or some nutritious element that are necessary to children. Or we can create a new flavor like mint-cola and the cola with very light alcoholic which is more suitable for the adults. Corporations have a particular responsibility to utilize resources efficiently. And large companies like PepsiCo must balance this responsibility with delivering profitable growth to shareholders, while also considering the integrated impacts on nutrition, the environment and agriculture in all business activities.

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Conclusion

We have worked as a management team of Pepsi cola. We have learnt and understood about the importance of a good management. An effective management is one which actually guides the employee onto a path of efficient and productive work. In true sense, effective management involves directing and organizing people or resources under ones influence, to ensure better co-ordination, productivity and best possible positive output in any field. In a sentence, we can say that management is important for achieving company targets, reduction in wastage, simplifies the organizational structure, increases stability, and ensures the goals.

All credit goes to:

Santus Kumar Deb Assistant Professor, THM