PepsiCo Internal and External Analysis Essay Example | Topics and Well Written Essays - 2500 words

PepsiCo Internal and External Analysis - Essay Example PepsiCo Inc. was formed in the year 1965 after the original Pepsi-Cola Company merged with Frito-lay. The corporation has since then expanded to deal in a wider variety of beverage and food brands, which has seen a merger in 2001 with Quaker Oats in conjunction with acquisition of Tropicana of 1998. The corporation is centered in Purchase, New York and has major interests in the manufacture, together with the marketing and distribution, of beverages, snacks based on grain, and other products. Twenty-two of its product lines, by the start of 2012, had generated revenues of over one billion dollars each in over two hundred countries, which resulted in net revenue of over forty three billion dollars. The corporation is ranked second in the world while it is first in the American market, as the largest beverage and food business by net revenue.  Ã‚   product lines are inclusive of hundreds of brands that were approximated to have generated at least one hundred and eight billion dollars in annual sales (Aswathappa, 2012: p32). Twenty-one of PepsiCo brands fulfill the identifier of a main brand as standardized by the food and beverage industry, i.e., sales of over one billion dollars annually. These are Pepsi-Cola, Lay’s, Mountain Dew, Lipton teas, Doritos, 7Up, Tropicana, Gatorade, Aquafina, Ruffles, Mirinda, Cheetos, Quaker Foods, Walkers, Fritos, Sierra Mist, Tostitos, and Pepsi Max. The company’s worldwide operations have shifted over time resulting from global expansion. This saw the corporation separated in 2010 into four divisions: PepsiCo Africa, Middle East, and Asia, PepsiCo Europe, PepsiCo Americas Beverages, PepsiCo Americas Foods (Blythe, 2009: p41). PepsiCo employs approximately 285,000 employees across the world as by counts in 2010. PepsiCo Americas Foods is operational in North and South America and is segmented into Latin America Foods in Central and South America, Gamesa and Sabritas in Mexico, Quaker Foods and Snacks in North America, as well as Frito-Lay and PepsiCo Americas Foods in North America. PepsiCo Americas Beverages manufactures or licenses non-carbonated and carbonated drinks in South, Central, and North America. PepsiCo Europe makes up sixteen percent of PepsiCo’s net revenue and manufactures beverages and foods in Europe, as well as expanding into Russia in the year 2009 (Cherunilam, 2010: p50). PepsiCo Africa, Middle East, and Asia cover these regions and prefer to go about production by affiliate operations, joint ventures, contract manufacturing, and licensing, although it still owns some facilities for manufacturing and distribution in these regions.