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PEPSI (Corporate Social Responsibility)
Transcript of PEPSI (Corporate Social Responsibility)
Pepsico Expand Globally
Q.Does a company identify its main economic, social and environment impacts?
Pepsi co is not just another vast range of shelf Choices, it is a brand that had made a decision years ago to step into the global arena. Making a decision of expanding globally would make this American cooperation into a multinational corporation. The expansion of PepsiCo has lead to a manufacturing of beverages and snack foods across 200 countries. PepsiCo’s global expansion continues to establish dominance even through the competition between Pepsi and coco cola, Pepsi has still been able to take some part of dominance.
By 2009, PepsiCo had infused $700 million into India and plans another 500 million over the next 3 years. Pepsi had began to work on 2 major deals to expand its global footing. One with Tingyi holding (a prominent Chinese beverage company) and the other with privately held Grupo Mabel, the 2nd Largest maker of cookies in Latin America. In recognition of competing with coco-cola in China (since coke has dominated the Asian Market) Pepsi had traded its bottling operation in china for a position in Tingyi Holding is beverage business. Pepsi’s bottling business in china had been incurring losses over the past 3 years as the cost of raw materials become competition with coca cola as coke contains 17% market share in Chine almost 3 times that of Pepsi.
Pepso had also began its alliance with Tingyi (Tingyi’s beverage subsidiary) which will become Pepsi’s franchise bottler in China this lead to a 5% equity interest in Tingui-Ashai and plans on increasing it 20% by 2015, as china will become the largest liquid refreshment market in the world.
To produce a success and a closing gap with coco cola Pepsi would need to Aquire Marilan Arimentos ( a Brazilian cookie manufacturer) and if successful Pepsi would be head to head with Kraft foods and close to beating coco-cola. Pepsi’s global footprint would increase significantly everywhere especially in grocery stores.
All these footprints would be a significant boost to Pepsi and would not only provide them with profits and a brand that Is known for worldwide but will also conquer all competitions especially against coco cola
“Any growth we achieve in one area takes from another and where we compete”
All the investments in Asia and Europe have created success but in America also have been switching up of loyalties. Coco-cola trying to invest in American companies and stores gave pepsi the need to now become the exclusive drinks at Pap Johns (3000 outlets).
Pepsi co’s recent moves into the global market will increase solid growth and a increase in investors and continues expansion.
Achieving a expansion globally will make profits to the pepsico brands and will make it a expanding market which will increase sales meaning more profit and success and diversification in their product line.
Pepsico’s strategies will also help with competitiveness and many TNC’s expand globally for defensive reasons to protect themselves from competitors or potential competition
Pepsi Variess from all around the world its image in different countries is all different it is seen different and presented differently to suit different countries. In Australia Pepsi is seen as a very cooling and refreshing beverage that people can afford. But pepsi in Australia is compared to coco cola all the time many people have different opinions to which drink is better especially due to similar taste but different in some ways. Pepsi is known as that blue can that is found in almost all food stores its a drink that almost everybody likes and it is a drink that everybody is aware of. But pepsi is seen differently in other countries for example the middle east they see Pepsi as their no. 1 drink. pepsi to them is much better than Coco cola mainly due to personal and religious beliefs about the drinks originality. Pepsi's marketing campaign also varies from country to country in many countries like india and pakistan as they mainly use glass bottles whilst in Australia we use cans it is mainly depending on what sources are cheaper in each country and what suits their needs. Also campaigns vary from country to country for example during the Month of Ramadan in the Middle east they campaigned a commercial of a family feasting at Ramadan whilst in Australia they would of not campaigned that they would of most likely campaigned something similar to America since we have similar traditions and both recognize celebrities from each country. Different countries campaign different things to relate to they certain time of year like in Australia during Christmas a campaign with a family feasting at Christmas might be campaigned to suit the Australia
New Pepsi Product
How Pepsi has evolved
Yes it does.
-Highest tax paying beverage company in Pakistan
-Taxes are given in Billions.
-5 to 6 thousand employees working in the co.
-Through the product, Pepsi is supporting
millions of households.
-People sell Pepsi products for their businesses, including Pan wala's, retailers, wholesalers which in
returns gives "Multiply Effect".
-Having drinks has become norm of daily lives of people.
-Every social function, event or occasion has a demand of having drinks without which it feels incomplete.
-Operations does not create that much waste.
-In production's department, there's no noise pollution and smoke pollution.
-Hard waste is disposed off properly.
-A team of sweepers who clean the mess inside the factory and outside the factory as well.
There are 3 types of containers
2- PET Bottles
Since the waste is non-biodegradable, A factory in korangi, who collects the bottles, crushes them, they compress them and make bails, which are exported to china through containers. They shred it to use them in pillow and quilts. (Polyester and Fibers). Which is by product.
Recycled again by melting them down.
- Hospitals are financially supported.
-Employees medication are supported.
-Nursing, school students and different groups visit the factory and taught.
-Students visit for experiential learning.
-Provided electricity for a year for building of a flyover near the factory.
Dar ul Sukoon
Q: Does the company link corporate responsibility issues to employees appraisals?
CSR is mainly responsibilty of Senior level management, however employees are encouraged to participate in CSR activities such as Blood donation etc.
Q: Does the employees have official representation in the company?
Anybody can walk into MD's office and share the concern whatever they want to.
- Pakistan Beverage Established in 1950's, that belonged to Pakola family.
-1979, partnershipped with Pepsi Cola International
- Now the market leader with 75% of market share in Pakistan.
Executive Director at Pakistan Beverage Limited
PakistanFood & Beverages
Global Environmental Technology (Pvt.) Limited, Salam Enterprises (Pvt.) Limited
University of Nevada-Reno
Who we met