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Example of the pepsi organizational culture

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Example of the pepsi organizational culture

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The company choose these kinds of ways in order to make better company culture.
Trust people and enable them to deliver always do what is right look for new development opporunities and cost savings.
Employees have a right to speek openly without fear.
company always focus on teamwork, transparancy.

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to conclude, pepsi is quite famous and well known for beverages.

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to conclude, pepsi is quite famous and well known for beverages.

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PepsiCo sees these changing trends. They know their consumers are looking to consume less “bad” sugars. While they won’t change their oldest and beloved products, they are reformulating and offering new products for the health-conscious consumers. They’ve reduced the amount of sugar in their 7Up products. They’ve also launched a probiotics drink line to branch into the healthy juices market. PepsiCo knows if they don’t get with the times, there will be a time they no longer exist.

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Executive summary:  Pepsi is one of the most recognizable companies in the snack and beverages industry worldwide. It was founded in 1898. Pepsi continually targets schools, restaurants, hotels and fast-food stores. Since 2014 their revenue has been growing significantly, with over 20% in increase since 2015(Statista, 2023).  

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Executive summary:  Pepsi is one of the most recognizable companies in the snack and beverages industry worldwide. It was founded in 1898. Pepsi continually targets schools, restaurants, hotels and fast-food stores. Since 2014 their revenue has been growing significantly, with over 20% in increase since 2015(Statista, 2023).  

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Low power: employees (glass door, 2017
Low interest: selling unhealthy products to little children (BBC, 2016)

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Political factors can affect Pepsi in various ways. For example, changes in government regulations or policies regarding food and beverage industry can impact Pepsi's operations and sales. Additionally, political instability in certain regions can disrupt supply chains and distribution networks. It's important for Pepsi to stay informed and adapt to political changes to navigate these challenges.

For assitance-incase government passes a rule that no one will drink that includes sugar their is direct affect on the sale of pepsi.

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It is one of the most famous and well-known global brands in the food and beverage industry. It is also known as the brand of youth. Has a high brand and reputation. It is worth $ 19.4 billion and is ranked 29th on the Forbes list of Most Valuable Brands.
https://iide.co/case-studies/swot-analysis-of-pepsi/#:~:text=Strengths%20of%20PepsiCo%20%3A&text=It%20is%20one%20of%20the,list%20of%20Most%20Valuable%20Brands.

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1.Products Perceived as Unhealthy ..
When it comes to consumer goods like soft drinks and snacks, perception is important. The majority of PepsiCo's carbonated soft beverages have high sugar concentrations, and its snacks have a lot of salt and artificial flavors and chemicals. This is a serious drawback, especially in the present marketplaces for health-conscious consumers.
2.Effects of Failed Products
Any failure is a sign of weakness. Failed PepsiCo products like Crystal Pepsi (Colorless Cola), Pepsi Blue, and others depressed workers and painted them as inept in the public eye, which allowed the competition to flourish.

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By S.K. Gupta | Last updated: April 06, 2023

Company: PepsiCo, Inc
CEO: Ramon Laguarta
Founders: Caleb D. Bradham
Year founded: 1898 (as Pepsi Cola), 1965 (as PepsiCo Inc.)
Headquarter: Harrison, New York
Number of Employees (December 2022): 315,000
Type: Public
Ticker Symbol: PEP
Annual Revenue (2022): $86.4 Billion
Profit | Net income (2022): $8.97 Billion

Products & Services: Pepsi | Mountain Dew | Lay's potato chips | Gatorade | Tropicana beverages | 7 Up | Doritos tortilla chips | Quaker foods and snacks | Cheetos | Mirinda | Ruffles potato chips | Aquafina bottled water | Tostitos tortilla chips | Mist Twist | Fritos corn chips | Walkers potato crisps
Competitors: | | Kellogg | Unilever | | Kraft Foods | Campbell Soup Company | Conagra Brands | Link Snacks | Monster Beverage | General Mills

PepsiCo's Strengths

According to Statista, PepsiCo is ranked the second most valuable soft drinks brand with a brand value of $21 Billion. In 2022, PepsiCo was ranked the 86th largest company in the world in Forbes' Global 2000.

Selling " Food & Snacks" (Frito Lays, Cheetos, Doritos, Kurkure) and " Beverages" (Pepsi, Gatorade, Tropicana) under one umbrella makes PepsiCo a more robust and diversified business. Its food business accounted for 58%, and beverages accounted for 42% of its revenue in 2022.

3. Highly Diversified Portfolio

The main strength of PepsiCo lies in the large number of brands under its portfolio spanning across the food and beverage sector. PepsiCo has 23 brands, such as Pepsi, Diet Pepsi, Pepsi Max, Fritos, and others; each generates more than in annual retail sales. While other companies struggled to meet their forecasts due to market uncertainties, PepsiCo managed to meet and beat its forecasts thanks to its diversified portfolio. Surging demand for its snacks like offset the decline in demand for soft drinks.

Pepsi has seven operational segments, including Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa, Middle East and South Asia, and Asia Pacific, Australia and New Zealand and China Region.

4. Strong Global Presence

PepsiCo has exploited the benefits of a solid global presence by partaking in more than 200 countries worldwide. PepsiCo's overwhelming presence in markets across the globe has enhanced global awareness and recognition of the brand among consumers. One of the strengths that have enabled PepsiCo to go head-to-head with competitors, such as Coca Cola is its global presence.

North America is Pepsi's largest market and represents 60% of total revenue, Europe being the second largest representing 16% of the revenue, and LatAm, AMESA, and APAC representing 10%, 8%, and 6% of revenue, respectively.

5. Direct-Store-Delivery

PepsiCo uses direct store delivery (DSD) for its supply chain and distribution network, which ensures that independent bottlers and distributors deliver beverages, snacks, and foods directly to retail stores. DSD ensures faster restocking better in-store promotion and maximum visibility.

The marketplace favors superior and dominant businesses giving them room to dictate terms. According to Information Resources, in 2022, Pepsi accounted for 46.3%, and Coca-Cola accounted for 25.6% of the U.S. liquid refreshment beverage category. It exploits its dominance to nurture favorable relationships with retailers gaining significant and easily accessible shelf space.

7. Effective Marketing Strategy

Pepsi understands the importance of marketing, evidenced by the fact that it has been sponsoring the Super Bowl halftime show for ten years, reaching an audience of 96.7 million people in 2021. In 2022, Pepsi Super Bowl LIV Halftime Show featured renowned performers and drew 103.4 million viewers

8. Iconic Youthful Brand

Pepsi's target audience has always been the younger generation. Pepsi has nurtured its image as an iconic youth brand. Historically, many iconic ads targeted pre-teens/ teens with the fun element of sports, music, etc.

9. Effective Supply Chain Management

Pepsi has one of the most effective supply chain management strategies in the world, allowing the company to exploit cheaper raw materials from countries across the world. Logistical is a significant strength for Pepsi.

For example, in case of coconut water, fresh ingredients and refrigeration are needed all the way to retail store shelves. Raw coconut comes from growers in Indonesia and the Philippines; packaging material comes from Europe, Asia, and the Middle East; and storage and redistribution happen at the port of California and New York.

10. Marketing through Sports

Partnerships with sports clubs and organizations provide an invaluable opportunity to advertise directly to consumers in sporting arenas.

11. Strong Corporate Social Responsibility

PepsiCo Foundation (philanthropic division) works with hundreds of international, national, and community-based organizations to enhance resource sustainability and tackle challenges facing societies across the world.

For example, PepsiCo has partnered with the Inter- American Development Bank (IDB) in projects providing clean drinking water and improved sanitation in Latin America.

Also, the food and beverage giant announced that it would invest $35 million, collaborating with Closed Loop Partners. The investment is part of an innovative recycling initiative, introducing small-scale, sustainable, and high-tech recycling systems in various communities in the US.

The recycling fund, named "Closed Loop Recycling Fund," will be used to help different areas of the country gain access to recycling, minimizing waste, and introducing a new line of rPET (recycled plastic) as well as various other sustainable materials as part of PepsiCo's sustainable initiative.

PepsiCo has a highly loyal customer base, particularly among the younger generation who love the iconic taste of the company's soft drinks.

PepsiCo's Weaknesses

1. Overdependence on Food and Beverages

Over-dependency on carbonated soft drinks and packaged foods undermine companies' flexibility and agility in case of turmoil in that segment. PepsiCo decided against the wise men by putting its eggs in one basket - food and beverages. The company should diversify to avoid the possibility of losing everything.

2. Products Perceived as Unhealthy

Perception is everything when it comes to consumer products such as soft drinks and snacks. Most of PepsiCo's carbonated soft drinks contain high sugar concentrates while its snacks are excessively salted with chemical additives and flavors. This is a significant weakness, particularly in the current health-conscious consumer markets.

3. Effects of Failed Products

Failure in any venture is a weakness. PepsiCo's failed products, such as Crystal Pepsi (Colorless Cola), Pepsi Blue, etc., demoralized employees and portrayed them as incompetent in the public sphere giving room for the competition to grow.

4. Controversial Advertisements

Companies must use their elevated position to advance society's common good. Unfortunately, in 2017, PepsiCo's advert featuring Kendall Jenner was criticized for trivializing the Black Lives Matter movement. The ad was pulled after one day.
"Pepsi was trying to project a global message of unity, peace, and understanding. Clearly, we missed the mark, and we apologize. We did not intend to make light of any serious issue. We are removing the content and halting any further rollout. We also apologize for putting Kendall Jenner in this position."
This is a major weakness compared to the positive values of life, such as family get-togethers consistently advocated for in most of Coca-Cola's advertisements.

PepsiCo was named one of the world's top three plastic polluters by Break Free from Plastic. The company has failed to adopt meaningful measures to increase the recycling of its bottles.

Additionally, Pepsi Lipton International has come by the ASA (Advertising Standards Authority). It is alleged that Pepsi Lipton used false advertising on their drink bottles claiming the bottles are "100% recycled plastic". The company stated that it had printed an asterisk right next to the "100% recycled" claim, indicating that the label and the cap are not made from recycled plastic. Pepsi Lipton International also agreed that the size of the text was very small indeed, which misled a lot of consumers into thinking their bottles are fully recycled plastic.

The national debate over racial inequality in the US brought attention to PepsiCo's racially-insensitive products. The company was forced to change the name and brand image of its Aunt Jemima after it was singled out as racist by Black Lives Matter protesters. PepsiCo is also considering changing other products like Uncle Ben's.

PepsiCo's Opportunities

1. Product Diversification

Diversification into different segments enables businesses to exploit benefits beyond their traditional field of operation and attain stability. Even though PepsiCo has 23 brands under its portfolio, all these are concentrated within the food and beverage industry. PepsiCo can exploit benefits in other segments by diversifying its products portfolio into different sectors beyond food and beverages, such as sportswear, acquiring a small but established sportswear brand.

PepsiCo can also diversify its product portfolio to include . The company recently announced that it was considering expanding into the alcoholic market after Coca-Cola Co announced they would be introducing an alcoholic drink in the US market in 2021.

More customers are using digital channels for online shopping. PepsiCo can exploit the benefits of online shopping by expanding its e-commerce (mobile apps) and growing sales through these channels.

3. Enhance Alliances and Partnerships

Businesses that seek and nurture solid alliances and partnerships in a globalized marketplace are more successful. For example, PepsiCo can extend the current partnership with into other areas to harness all benefits of their partner's numerous coffee outlets.

4. Increase Consumer-Driven R&D

Adapting to marketplace changes is the key to success. PepsiCo has the resources to increase investment in research and development, manufacturing, and go-to-market capabilities and attain an edge over competitors in the changing consumer and retail landscapes. In FY2022, PepsiCo spent on research and development, with its R&D expenses ranging between $665 million and $760 million in the past ten years.

5. Expanding Operations in Emerging Markets

The rapid growth and improved economic situation in emerging markets in Africa, Asia, and South America provide PepsiCo with an invaluable opportunity to expand its operations and grow its customer base.

6. Efforts towards Health-Conscious customers' needs

PepsiCo has increased its focus on reducing sugar, salt and fat in 75% of its food products by 2025 to less than 100 calories of added sugar per 12 ounces, 1.3 milligrams of sodium per calorie and less than 1.1 grams of saturated fat per 100 calories.

Pepsi also announced that it would partner with Beyond Meat to work on vegan jerky. The collaboration is named the " PLANeT Partnership." Collaborating with PepsiCo, one of the largest food and drinks conglomerates in the world, will give Beyond Meat a chance to use Pepsi's world-class marketing strategies and production power. On the other hand, this opportunity will pave the way for Pepsi to diversify its product portfolio, venturing into new and healthier food products.

7. Increase Healthy Options

The fact that most of the soft drinks and snacks offered by PepsiCo are considered unhealthy implies that there is room for improvement. Only 44% of PepsiCo's beverage portfolio has under 100 calories per serving, which are high and unhealthy. The company can exploit the opportunities presented by an increasing number of health-conscious consumers by broadening product lines to include healthy options such as milk or vegetable-based shakes.

8. Introduce New Flavors

Companies need to adapt to changes in consumer preferences and tastes by ensuring consistent top-line growth. PepsiCo can introduce new flavors in the soft drinks and snacks offered to the market and expand its customer base. The company recently introduced new flavors, including which combines the flavorful taste of coffee with Pepsi Cola.

9. Enhance Corporate Social Responsibility

Sentimental and emotional values influence consumers' decisions. PepsiCo can enhance its corporate social responsibility activities to enhance the sustainable use of renewable resources and tackle issues affecting consumers directly, strengthening loyalty while attracting new customers. It joined consumers and other companies in condemning Facebook's inaction against hate speech and racism. PepsiCo dollars from Facebook as part of its CSR to its customers.

In March 2020, PepsiCo acquired Rockstar Energy Beverages for $3.85 Billion to compete with its biggest competitor Monster Beverage in the energy drink space. PepsiCo also finalized the purchase of South Africa's for $1.7 billion.

The company further expanded its push into healthier fare with the $3.2 billion acquisition of at-home seltzer maker SodaStream and subsequently launched of sparkling water brand Bubly.

PepsiCo's Threats

PepsiCo's profitability and market share are threatened by stiff competition from Coca-Cola, Nestle, Dr. Peppers, Unilever, and so on. The competition also threatens long-term sustainability and profitability by increasing the cost of protecting market share through adverts, promotions, and discounts to retain customers.

2. Economic Slowdown or Recession

Even though food and beverage consumer markets are going strong, the possibility of a slowdown or recession soon cannot be ruled out. In case of a downturn, PepsiCo can incur losses because its product portfolio is concentrated with products, which are usually among the first expenses to be dropped by consumers during economic hardship.

In the 2008-09 recession, Pepsi had to cut over due to a decrease in soft drink sales. The company was forced to scrap its full-year forecast for the 2020-2021 fiscal year due to uncertainties in the market. It scrapped its projection of 4% revenue growth for the year in the first quarter of 2020 after its net income fell to $1.34 billion from $1.41 billion a year earlier.

3. Competitors Adopt Technology More Effectively

4. Changes in Demographics

Changes in demographics and economic situation transforms target markets, which can impact businesses negatively. For example, the demographics of Nordic nations such as Sweden ( median age 41.1 years) have shifted with an increase in older consumers and a decreased number of youths. These changes can threaten PepsiCo's profitability and sustainability because a large portion of its customer base consists of youth.

5. Increase in Trade Tensions

Uncertainty and instability impede effective operations. In the past two years, US-China trade tensions have increased uncertainty and instability in global markets. PepsiCo's international operations can be undermined if trade tensions escalate, leading to a trade war, isolationism, and protectionism in the company's overseas markets.

Additionally, The UKG payroll company came under a ransomware attack earlier this month. Ultimate Kronos Group is a top-tier workforce and HR resource management company. Large organizations like PepsiCo and Tesla employ their timekeeping and payroll services. The UKG ransomware attack resulted in inaccurate and delayed employee paychecks, which led to an outrage. One worker at PepsiCo filed a lawsuit against Pepsi.

6. Government Laws and Regulations

7. Increasing Health Consciousness

The fact that most of the soft drinks and snacks offered by PepsiCo are considered as implies that increasing health consciousness in consumer markets is a threat ( Cannibalism) to the company.

References & more information

ABOUT THE COMPANY| PEPSICO

Featured image by Ja San Miguel

PepsiCo & Inter-American Development Bank Partnership Helps More Than 765,000 People in Latin America Gain Access to Clean Water| PR Newswire

Pepsi| Forbes

PepsiCo's Practical Application of Supply Chain Resilience Strategies| Forbes

New PepsiCo Loyalty Program Rewards Snack & Beverage Pairings| Convenience Store News

PepsiCo Beverages North America Becomes Lightning's Sixth Championship Level Partner| Central Chart

The creator of Crystal Pepsi says it's probably the greatest idea he's ever had - and its failure taught him an important lesson| Business Insider

From Soda Stream to Starbucks| Beverage Daily

Pepsi's Focus On Diversifying Drinks Portfolio To Help Steady Beverages Revenue| Forbes

Health Snacks And NCDs Could Drive PepsiCo's Revenues Close To $69 Billion By 2020| Forbes

PepsiCo Warns of Weakening Global Economy| Wall Street Journal

PepsiCo: A Must-Know Overview of the Consumer Giant| Market Realist

PepsiCo CFO: The consumer is doing 'just fine' right now 'as far as we can tell'| CNBC

Coke and Pepsi Give Millions to Public Health, Then Lobby Against It| The New York Times

PepsiCo SEC Filings| PepsiCO

PepsiCo pledges to cut the fat, salt and sugar by 2025| USA TODAY

Pepsi Pulls Ad Accused of Trivializing Black Lives Matter| The New York Times

PepsiCo Agrees to Buy Rockstar Energy for $3.85 Billion| Barron's

Pepsi to cut 3,300 jobs as weak economy hits soft drink sales| The New York Times

Murphy, A. (2020, May 1). Global 2000| Forbes

Kumar, U. S. (2020, April 28). PepsiCo sees snacking boost as lockdowns hammer soda sales| Reuters

Sports Reporter (2020, Feb 3). Super Bowl LIV on FOX Draws Viewership of More Than 102 Million Across Television & Digital Platforms| FOX Sports

Brock, J. (2020, Oct. 5). Set, miss, repeat: big brands and plastic recycling targets| Reuters

Geller, M. (2020, June 17). PepsiCo drops Aunt Jemima branding, Uncle Ben's, others under review| Reuters

Uday, S. (2020, Oct. 1). PepsiCo to consider entering the alcoholic beverages business| Reuters

Bedford, E. (2020, May 11). PepsiCo's R&D costs worldwide, 2013-2019| Statista

Arthur, R. (2020, Jan 16). Pepsi Café to hit US Shelves in 2020| Beverage Daily

Moynihan, L. (2020, June 28). Pepsi quietly joining Facebook ad boycott| FOX Business

Child, K. (2020, March 6). PepsiCo's purchase of Pioneer is finalized| Business Live

Janowski, T. (2020, April 28). PepsiCo scraps forecast due to coronavirus crisis| Reuters

Pepsico 2022 Annual Report

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Read here about Pepsi swot analysis to know the strengths of Pepsi that includes its brand value, work strategy, global presence and many more!

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How the organisational structure of Pepsi contributes to their company 

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How the organisational structure of Pepsi contributes to their company 

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Pepsi has a decentralised organisational structure (Extrovert, 2023). The top tier level of the organisation maintains a small span of control but they still make the organisation-wide decisions and their choices are carried out through the delegation of work to lower-level management. Operational decisions are from separate business units due to two variables: business and geography (Panmore, 2023)

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Pepsi’s customers are mainly of the age group 15-44. So, it should have its presence in those markets where the average age of the country lies in this range. This is the reason why Pepsi’s advertisements are focused on appeasing the people of this age group.

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For our consumers
By creating joyful moments through our delicious and nourishing products and unique brand experiences.

For our customers
By being the best possible partner, driving game-changing innovation and delivering a level of growth unmatched in our industry.

For our associates and our communities
By creating meaningful opportunities to work, gain new skills and build successful careers, and maintaining a diverse and inclusive workplace.

For our planet
By conserving nature’s precious resources and fostering a more sustainable planet for our children and grandchildren.

For our shareholders
By delivering sustainable top-tier total shareholder return and embracing best-in-class corporate governance.

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The Pepsi company has facing several threats that can cause to financial and business performance as well. For instance of intense competition.
There are few of key threats that we can see-

1. Natural disasters and supply chain disruptions

2. Economic downturn-
This can reduce customer spending non- essential items such as beverages and snacks

3. Changing consumer’s preferences-
These changes to remain competitive.

( PepsiCo SWOT Analysis,2023 )

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Opportunities:

Pepsi may want to consider expanding the types of items it offers, such as plant-based foods or non-alcoholic beverages.

PepsiCo may use digital and e-commerce channels in order to expand its audience and boost sales.

Admin. (2023, March 13). PepsiCo SWOT analysis. The Strategy Story. https://thestrategystory.com/blog/pepsico-swot-analysis

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definition- the way in which a business operates in terms of values, beliefs, behaviours and norms (Kissinger, 2023)

Pepsi - pepsi emphasises its focus on taking care of its employees, customers, communities and investors. through this they are able to achieve better performance

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The stakeholders of PepsiCo include shareholders, employees
,customers, suppliers, and the communities where they operate.

A local government or regulatory authority may be considered a high-power, low-interest stakeholder because they have the power to regulate and enforce laws related to Pepsi's operations, but they may not have a strong personal interest in the company's success or failure. They are more focused on ensuring compliance with regulations and protecting the interests of the public.

shubhAm🇮🇳

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1. Automation and AI: The rise of automation and AI technologies can provide opportunities for increased efficiency in PepsiCo’s manufacturing and supply chain processes. This could reduce costs and improve product quality.

2. E-commerce: The growth of online shopping and e-commerce platforms presents a significant opportunity for PepsiCo to reach a broader consumer base and increase sales. It can also enable direct-to-consumer marketing efforts.

3. New Manufacturing Technologies: Technological advancements in food and beverage manufacturing could allow PepsiCo to create new types of products, improve the quality of existing products, or reduce production costs.

4. Data Analytics: Using data analytics can help PepsiCo better understand consumer trends and preferences, optimize its supply chain, and make more informed strategic decisions.

5. Digital Marketing: The advancement of technology has opened up new marketing and customer engagement platforms. PepsiCo can leverage social media platforms, SEO, email marketing, and other digital marketing tools to reach its consumers.

6. Sustainable Technology: Technology that supports sustainability is increasingly important. PepsiCo can use technology to reduce its environmental impact, for example, by reducing water and energy usage in its factories or by developing more sustainable packaging solutions.

7. Supply Chain Management Systems: Advanced supply chain management systems can improve efficiency, reduce costs, and increase the speed of distribution for PepsiCo.

(TheStrategyStory, 2023)
TheStrategyStory. (2023, May 23). PepsiCo PESTEL analysis. The Strategy Story. https://thestrategystory.com/blog/pepsico-pestel-analysis/

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One of the most well-known goods in the world today, Pepsi Cola is almost as renowned for its advertising as for its ongoing competition with rival soft drink Coca-Cola. Pepsi has evolved from its modest beginnings in a North Carolina pharmacy over 125 years ago by Caleb Bradham to a product offered in various formulations (PepsiCo, 2023). 

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One of the most well-known goods in the world today, Pepsi Cola is almost as renowned for its advertising as for its ongoing competition with rival soft drink Coca-Cola. Pepsi has evolved from its modest beginnings in a North Carolina pharmacy over 125 years ago by Caleb Bradham to a product offered in various formulations (PepsiCo, 2023). 

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We employ a system of internal and external auditing methods to track our compliance with our GEHSMS programme and environmental requirements in the jurisdictions in which we operate, in addition to the internal programmes we have in place to minimise environmental effect.(Pepsico,2023).
-Spill mitigation and control
-access to sanitary conditions and good hygiene
-Use, disposal, and storage of chemicals safely

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LOW POWER HIGH INTEREST
Community groups , NGO'S, Residents,
May have high interest in the PEPSI project because there will be job opportunities but have low power to involve in the decision making in terms of policy makings especially when its comes to the environment.