UNIVERSITI UTARA MALAYSIA

COLLEGE OF BUSINESS

BJTM 3023

INDUSTRIAL ENGINEERING

TITLE:

PEPSICO – WHY IT IS LISTED AS TOP 10

MOST EFFICIENT COMPANY IN THE WORLD

SUBMITTED TO :
PUAN RISYAWATI MOHD ISMAIL

GROU NAME MATRIC.

P NO
B NUR SYAHAMAH BT FUZAI 125836
SUBMITTED DATE: 28/02/10

BACKGROUND OF PEPSICO
PepsiCo is a leading global snack and beverage company operating in four major business
segments such as Frito-Lay North America, PepsiCo Beverages North America, Quaker
Foods, and PepsiCo International. The company manufactures, markets and sells a variety of
salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages
and foods. The company has leading market share in many of its product categories, and its
presence in all major emerging economies positions the company for continued growth well
into the future. It has operations in almost 200 countries and has made a market shift towards
healty an environmentally friendly products in the last few years.

THE ISSUES OF PEPSICO: WHY IT IS LISTED AS TOP 10 EFFICENT COMPANY

IN THE WORLD

Pepsico is listed as to 10 efficient company in the world because the company doing :

1. Performance with purpose

At PepsiCo, they are committed to achieving business and financial success while
leaving a positive imprint on society. Performance with purpose is as the heart of
every of their business. They believe financial achievement can go hand-in-hand with
social and environmental performance. Their approach to superior financial
performance is straightforward-dirve shareholder. Their performance with purpose
agenda is comprised of tree platforms such as:

• Human sustainability : Nourish consumers with a broad range of convenient,

great-tasting foods and drinks from treats and simple refreshments to positive
nutrition so that, consumers will make the healthy choice an easier choice to
make.

• Environmental sustainability : Conserve their natural resources and operate in

a way that minimizes their environmental footprint with the goal of reaching a
net-neutral impact.

• Talent sustainability : Developing their employees by creating a diverse and

inclusive culture.

2. Efficiently use resources

 One of PepsiCo’s first goals was to more efficiently use resources in its factories.
Carey said that they began the meticulous record-keeping in 2004 and in 2006, they
are publicly committed to improving their using of water by 20 percent, electricity by
20 percent and fuel by 25 percent per unit of production by 2015 across their entire
company.” It began implementing various technologies and programs throughout its
operations to hit these targets.

3. Market positioning

Market positioning is one of the most important aspects of Pepsico listed as top 10
efficient company. It has been a leader and gaining market share in each of its core
businesses and strives to continue in recognizing under-marketed target regions
throughout the world to continually gain market share from its competitors.

4. Promotions, advertising and sposorship

PepsiCo has created one of the largest and most opportunistic and unique companies
around. Through it is use of integrated marketing communications it has created a
brand name and product that is unique to all others. It strives to globalize is business
abroad with its Frito-Lay product line, Tropicana juices, and Pepsi beverages. It
continues to find different and un-tapped target markets around the world to gain
market share from its competitors. It also continues its innovation of products to adapt
to a changing global economy which has been a key to its success in the past and will
be key to its success in the future.

5. Improvement project

Improvement projects means the company do the improvement activity to improve

their production, human resource, quality and others. PepsiCo has made huge gains at
its Gatorade plants. For example, it used to lubricate its production lines with a steady
stream of water. However, in working with one of its suppliers, JohnsonDiversey, the
company was able to implement the use of a new lubricant, saving 75 million gallons
of water each year across the system. To ensure its Gatorade bottles were clean, the
company used to rinse them with water before filling. It found, however, it could get
the bottles just as clean or cleaner when using ionized air. The plants turned the water
off to the rinsers, replaced it with the new technology and have saved 150 million
gallons of water each year.
 PepsiCo also focused heavily on improving its lighting systems. “When you improve
your lighting, it’s amazing how much energy you can save and how quickly it pays
back,” Carey says. “Not only did our new lighting systems save a lot of energy, but
they also improve visibility, which reduces risks and accidents. All of these are big
positives.

“We are definitely focused on vastly cutting our energy use,” he adds. “However, for
the energy that we do use, we want to be as renewable as possible, and we’re primarily
doing that through solar energy and landfill gas.”

IMPACTS ON THE INDUSTRY OR COMPANY

1. Performance with purpose

With “ performance with purpose” programe, company will have respect to water,
climate change, agriculture, packaging and waste. Many healthy product will be
developed and company will attract consumers in the world to use the product that
produced by PepsiCo company.

2. Efficiently use resources

While the resources use efficiently, by 2008 at Gatorade and Tropicana plants saw a
combined 25 percent improvement in energy use and 13 percent improvement in its
water use per unit of production.

3. Market positioning

The fact that PepsiCo has many different product lines and business ventures that
incorporate its name creates many different target markets for each of its products.
With market positioning, the company will do the market segmentetion to focusing on
what consumers wants and who are the consumers.

4. Promotions, advertising and sponsorship

The innovation will doing by company to attract the consumers.

5. Improvement project

This project improve the production quality.

CONCLUSION

PepsiCo had been listed as the top 10 efficient company in the world because they implement
many actities to improve their productivity for getting consumer in the world. The
“performance with purpose” program is the important planning that company had been doing
to know overall about their marketing and what should they do to be the top 10 efficient
company in the world.

REFERENCES

 http://www.directessays.com/viewpaper/26043.html
 http://www.usbusiness-review.com/content/view/1431/31/
 http://www.pepsico.com/Purpose/Sustainability/Performance-with-
Purpose.html