Information Systems Management Pepsico Inc

Information Systems Management Pepsico IncThere atomic number 18 scarcely a few people in the exisdecadece who ar unacquainted with(predicate) with the word Pepsi. Words such as cola or papa sop up almost become synonymous with it. Pepsi is arguably the most noted soft-drink consumed by billions all over the sphere. And the troupe responsible behind this victor is matchless of the world food securities industry giants PEPSICO, Inc.According to Andreas Penzkofer (2007), the lodge came into existence in 1965, when the Pepsi-cola guild acquired the snack food troupe called Frito-Lay. The beau monde has started to expand itself afield since the nineties. Pepsico Incorporated is a Fortune euchre the Statesn multinational corporation. Its plate argon based in Purchase, New York. It is a political party which has trade and manufactu noise interests in a wide variety of products ranging from carbonated and non-carbonated crapulences, salty, sweet and grain based snacks, juices etcetera. Some of the major brands owned by the confederation atomic number 18 Quaker Oats,Gatorade,Frito-Lay,Tropi whoremastera,Copella,Mountain Dew, and7 Up.According to Lawrence Dietz (1973), the perspective of the company is to append the value of the sh atomic number 18-holders investment. The company plans to do this by achieving recruitth in sales, compulsive the costs and intelligent investment of resources. The company believes that their commercial winner is interdependent upon offering good quality and value to their consumers and customers, execute available products that be safe, wholesome, and economically efficient while providing fair returns on investments to their investors by maintaining high levels of integrity.ORGANISATIONAL STRUCTURE AND CULTUREPepsico operates in all the six major continents of the world namely Asia, Africa, Australia, North America, S step to the foreh America and atomic number 63. Their operations are unless broken down a mongst countries in these continents. The inter-organisation structure of the company has some sub-divisions. Their products are produced and bottled at the manufacturing plant, delivered to the suppliers by the distributors, the suppliers sell it to the retailers and finally to the consumers. These supply-chains in different countries are controlled by one main headquarter.According to Andreas Penzkofer (2007), the aim of the company is to curb supply ingredients and maintain purified water supply to en certainly quality and approachability to produce the products. Ensure availability of the best technology and immediate depot and inventory actes to maintain freshness and quality. Determine the demand by previous(prenominal) sales and future commercialiseing. Also ensure proper packaging, maintain quick local distribution and meet any untested demands or aspiration with products and consumer needs.Andreas Penzkofer (2007), likewise states that the companys mission is to b ecome the worlds best consumer products company. Its aim is to improve on the financial returns to the investors as it provides opportunities of growth and increase to its employees. It is also concerned just some preserving the environment and has designed a separate set of goals especially in its favour. This rear be observed from the replacement of can holders with plastic ring connectors which snap when the cans are removed thereby reducing the risk of network for wildlife. Pepsico also aims at diversifying its workforce so as to turn out a better understanding of different cultures. This has led the company to win some(prenominal) awards as well as being be at the 9th send by the fortune magazine as being the best company for minorities.MARKET SHAREAccording to Lawrence Dietz (1973), Pepsico, Inc. is one of the leading consumer product companies in the world having many of the worlds most important and valuable trademarks. It is the second largest soft-drink crease h aving a 21 portion share of the carbonated soft-drink grocery store in the world and 29 percent in the United States. Three of its major soft-drink brands Pepsi-cola, Mountain Dew and Diet Pepsi are amongst the top-ten soft-drinks in the U.S. market. The company has also transmit itself substantially in the world snacks market by introducing a company division known as Frito-Lay. It has a 40 percent world market share in salty snacks and 56 percent in the United States. It is nine times the size of its closest competitor in the U.S. and sells nine of the top-ten snack chip brands in the supermarket channel some of which accommodate lays, Doritos, ruffles and Chee-tos. Frito-Lay is responsible for generating more(prenominal) than 60 percent of Pepsicos net-sales and more than two-thirds of the parent companys operate benefit. The company also has a third division called Tropicana Products, Inc., which is the world drawing card in juice sales and occupies a substantive 41 perc ent of the U.S. chilled orange juice market. On a worldwide scale, Pepsico owns 16 brands that give right smart more than 500 zillion dollars in sales each year, ten of which are responsible for generating more than 1 billion dollars annually. Pepsico acquires around 35 percent of its retail sales outside the United States, with Pepsi-cola brands marketed in about 160 countries, Frito-Lay brands marketed in more than 40 and Tropicana brands in around 50 countries.BUSINESS MODELAccording to Richard Goodman (2009), Pepsico has managed to device a successful production line model which stresses importance on three key factors. Structural and operable advantages, successfully pilot the company through uncertain times and reservation strategic investments for future growth. Pepsico aims at meeting challenges and investing for the future by providing value to customers and consumers, having an excellent market strategy, investing in research and development and innovation. By achie ving these factors, the company will be able to retain customers. The company also aims at trenchantly managing price gaps, bringing in global advances in beverage pack sizes, activating the consumer by holding contests, running(a) out capital benefits for the customers as well as the consumers, control prices of products around the world market, appealing to local tastes, adapting to local customs thereby achieving fit and consistent performance.GLOBAL VISIBILITYThe global visibility of Pepsico can be observed from the sheer number of countries its products are consumed in. From the market share segmentation above, it can be seen that Pepsi-cola brands are marketed in 160 countries, Frito-Lay brands marketed in more than 40 and Tropicana brands in around 50 countries. Although Pepsico is an American Multinational corporation, India and Europe are of two of its biggest markets outside of the United States.BUSINESS ALLIANCESPepsico has formed partnerships with many products it do es not own but in order to distribute and market them with its own products. Some of these products include, Starbucks iced coffee, Lipton original iced tea, Ben and Jerrys milkshake etcetera. Also some of Pepsicos note alliances include Pepsico Quaker Chewy teaming up with Afterschool trammel and Miranda Cosgrove to Call assistance to the Importance of Afterschool Programs, Pepsi-Cola North America Beverages and Ocean Spray Strategic Alliance to Include Additional Juice and Juice Drinks, Oxford HealthAllianceand PepsiCo institution implemented Community Interventions etcetera. (Source www.pepsico.com, date taken 08/08/2010)COMPETITIOR ANALYSISDIRECT COMPETITIORSThe Coca-Cola orderAs we all know, Coca-cola or Coke as it is popularly known, and Pepsi have been competing with each other since the longest possible times. Even as kids, we utilise to have advertisements on television showing us to choose one over the other. As the years pass by and as the companies depend to expan d themselves more and more, their rivalry to attain market dominance seems to grow further more.According to Pat Watters (1978), the Coca-Cola caller is basically a non-alcoholic beverage producing company. It is also responsible for manufacturing, marketing and distributing concentrates and syrups which are used to produce these beverages. The Coca-Cola Company has their beverages sold in more than 200 countries worldwide. Their headquarters is in Atlanta, Georgia. The company owns more than 500 brands of non-alcoholic beverages which primarily include sparkling beverages. But they also manufacture still beverages like enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. purple Crown Company, IncThe Royal-Crown Company, Inc is a 50 billion dollar company which manufactures and sells concentrates that are used in the production of soft-drinks. These soft-drinks are then sold locally and internationally to independent licensed bot tlers.RC cola is the companys leading brand and is ranked as the third largest cola brands after Pepsi and Coke. Some of the other brands which the company owns are Diet RC Cola, Diet Rite Cola, Lockjaw, Upper 10 and kick. (Source www.rccola.com, witness accessed 09/08/2010)COMPETITIVE ANALYSIS GRIDSWOT analysis for PepsiCoSWOT Analysis signifies the evaluation of the strengths, weaknesses, opportunities and threats possessed and faced by a particular company, boldness or institution. According to Pahl, Richter (2009), SWOT Analysis is beneficial and a life-or-death tool for decision-making and figuring dependencies between a company and its environment since natural opinions are replaced by proactive and constructive thinking.The SWOT Analysis for PepsiCo is as follows3.1. StrengthsPepsiCo has a strong brand reputation in the global market due to its presence of over 120 years.It has had a significantly increase market share over the years due to the launch of new products lik e Pepsi Max and other ideas. (Bachmeier, 2009)Its place has been determined and positioned strongly with consider to profits, sales and customer loyalty due to its creativity and rough-and-readyness.PepsiCo boasts of a strong product line with a variety and diverse range of products.It faces no cash deficit and hence has huge advertising budgets to strengthen its market position.3.2. WeaknessesPepsiCo depends largely on the US market for its revenues. According to Plunkett (2009), around 29% of PepsiCos nub net revenue is derived only from PepsiCo Beverages North America and its total market revenue dependent on US alone exceeds 50%. This may prove to be detrimental in the constantly changing economic conditions.Some of the PepsiCo products lack uniformity in their brand names.Experts have cited health hazards in the consumption of PepsiCo products due to high fat and borecole contents.The image of PepsiCo has been at empale due to incidents like the exploding of Pepsi cans in 2007 followed by salmonella contamination in Pepsicos product Aunt Jemima pancake and waffle mix. (Clark, 2008)3.3. OpportunitiesPepsiCo has been works to broaden its product base substantially. In 2005, it bought General Mills stake of the largest European snack food firm Snack Ventures Europe. In addition, PepsiCo acquired the German juice maker Punica Getraenke. (Penzkofer, 2007)PepsiCo operates through its four subsidiaries PepsiCo Beverages North America (PBNA), PepsiCo International (PI), Quaker Foods North America (QFNA) and Frito-Lay North America (FLNA) in almost 200 countries. (Penzkofer, 2007)With 153,000 employees, the company had total net revenue of $ 29,261 million in 2005 and was ranked at place 62 of the Fortune 500 Ranking of the largest companies in the United States. (Norton, Porter, 2010)PepsiCo has gradually been developing noncarbonated drinks and wakeless products, attracting more customers.3.4. ThreatsPepsiCo faces considerable threats due to strong comp etitors like The Coca-Cola Company, Nestle, Dr. Pepper Snapple crowd etcetera.Incidents like those of contaminations and pesticide residues found in PepsiCo products have caused substantial brand maltreat to the company, especially in large emerging markets like India.PepsiCo has been in a vulnerable position in the recent past due to lug problems. To illustrate, there was a month long strike at Frito-Lay India, a part of PepsiCo India Holdings Limited, beginning in August 2008 due to a contravention between the workers union and the company management. (Source http//www.expressindia.com/latest-news/strike-at-pepsis-channo-plant-ends/363190/ , Date accessed 12.08.2010)Stagnancy acts as a threat for the company since the food and beverages industry has reached its maturity and there are hardly any avenues that remain unexplored.PROPOSED BUSINESS, INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY STRATEGIES FOR THE earlyBusiness outlineFor future growth opportunities and profits, P epsiCo should try to carry out their business by introducing healthier products in the market. The company can pass on this byReducing the calories in the food products so that the consumption can be a healthy one.The company can manipulate the market to control what people are eating and drinking.Healthy options should be do available to allThe company should undergo a change from inside(a) and transform their reputation as a manufacturer of healthy products which fundamentally gives nutritional value.In the years to come, the company should engage its business in providing fruits, vegetables and grains. The company as a whole should respond to the changing consumer needs. exploitation the latest science and encouraging positive nutrition is the need of the time of day as the masses become health conscious day by day. The company needs to be reformulating itself and become innovative by making use of the next generation technology. The company can further amalgamate itself wit h healthier brands of products. (Source www.Pepsico.com, Date accessed 10/08/2010)Information Systems and Information Technology StrategyBuckingham et al. (1987), defines an training administration to be a ashes that can assemble, store, process and deliver schooling relevant to an organisation. This is done in a way that the information is available and useful to anyone who wants to use it, including managers, faculty, clients and citizens. An information body is a human activity system which may or may not involve the use of computer systems.A good information system strategy according to Guy Fitzgerald (2002), for a huge consumer food products and beverages company like PepsiCo to carry out its business for future growth and profits would beTo precisely document the requirements necessary for a good information system Here, the users should be able to specify their system requirements or the system developers should be able to investigate and analyse user requirements so th at the information system will meet the needs of the users.Efficiently monitor the distribute by providing an orderly method of development For a huge company like PepsiCo, controlling its large-scale projects is not easy. If the projects fail to meet the deadline, they can have serious cost and other repercussions for the company. Providing check-points and specific stages should make sure that the project planning procedures are applied effectively.Provision for the companys information system should have a suitable time limit and an acceptable cost.The financial backing of the system should be properly preserved and also the system should be easy to maintain This is extremely important as in a company like Pepsico, modifications to the information systems is inevitable due to the amount of changes fetching place in the company and its environment.The system should be able to make the best use of the techniques and tools that are already available.The system should be want by the people who are affected with the system such as the company stakeholders. The stake holders of the company may include clients, managers, auditors and users. If the system is desire by them, it is most likely to be used and bring success to the company.A successful information system should also make effective use of information technology by using the available tools and techniques. An effective use of information technology would involveAll staff having normal desktop tools. They should have access to email, Internet and Intranet.IT infrastructure should be infinitely upgraded as allowed by the companys resources and budget.Systems and networks at the companys head-quarters and in the field should be standardize and centrally managed.A centralised team should provide IT assistance to staff and a wide range of IT training.The company should make use ERP systems at the head-quarters.For information and knowledge management, the company should implement document management sy stem.making use of such business, information system and information technology strategies would benefactor the company stay competitive in the market in the future. ratiocination