Pepsi - Malillin 12 02 09

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PEPSI Anderson Hill Road inPurchase, NY

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Business Environment

PepsiCo respects the dignity of ourworkers in the workplace and wework to ensure our associates' rights

to personal security, a safe, clean andhealthful workplace, and freedomfrom harassment or abuse of anykind.

We do not use compulsory or childlabor.

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Business Environment

We do not tolerate

discrimination and work to

ensure equal opportunity for all

associates.

We comply with all applicable

laws, regulations, and other

employment standards,wherever we operate or work.

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External and Internal Analysis

Strengths:

1. Company Image:

It also is a reputable org. and is well known

all over the world. Perception of producing ahigh quality product.

2. Quality Conscious:

They maintain a high quality as Pepsi ColaInternational collect sample from its

different production facilities and send them

for lab test in Tokyo.

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3. Good Relation with Franchise:

Throughout its history it has a good relation

with franchisers working in different areas of

the world where they have the productionfacilities.

4. Production Capacity:

It has the highest production capacity i.e.60,000 cases per day is not only in Pakistan

but also in South Asia.

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5. Market Share:

It has a highest market share i.e. 62% in

Pakistan and leading a far step head from its

competitors.

6. Large No. of diversity businesses:

This is also its main strength as it ahs

diversity in many businesses.

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7. High Tech Culture:

The whole culture and business operating

environment at Pepsi-Cola-West Asia has

quick access to a centralized database anthey use computers as business tools for

analysis and quick decision making.

8. Sponsorships:

They mainly use celebrities in their

advertising campaigning like Imran Khan,

Wasim Akram, and Waqar Younas etc. Also

sponsor social activates programs like music

etc.

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7. High Tech Culture:

The whole culture and business operating

environment at Pepsi has quick access to a

centralized database an they use computersas business tools for analysis and quick

decision making.

8. Sponsorships:

They mainly use celebrities in their

advertising campaigning. Also sponsor social

activates programs like music etc.

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Weaknesses:

1. Weak Distribution:

They lack behind in catering the rural areas

and just concentrating in the urban areas.2. Low consumer knowledge:

Unable to maximize local consumer

knowledge.

3. Lack of soft drink: Lack of soft drink know-how as a result of

diversified business units and generalist

managers

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Mission

Our mission is to be the world's

premier consumer products

company focused on convenient

foods and beverages. And in

everything we do, we strive for

honesty, fairness and integrity.

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Vision

Our vision is put into action

through programs and a focus

on environmental stewardship,

activities to benefit society, and

a commitment to build

shareholder value by making

PepsiCo a truly sustainablecompany.

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Business Locations

United States - Pepsi Bottling Group (PBG)

Argentina & Uruguay - Pepsi Argentina

Austria - Pepsi Austria

Belgium - Pepsi Belgium

Czech Republic - Pepsi Czech Republic

Norway - Pepsi Norway Poland - Pepsi Poland

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Russia - Pepsi Russia

Slovak Republic - Pepsi Slovak Republic

Sweden - Pepsi Sweden United Kingdom - Pepsi United Kingdom

Japan - Pepsi Japan

India - PepsiCo India

Arabia Pepsi Arabia

Philippines Pepsi Philippines

Business Locations

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Business in Formation,

Technologies, and Processes

Accelerated the growth of our

portfolio of healthful products

PepsiCo named to the Dow Jones

Index for the third straight year

Expanded our portfolio of healthful

products through innovation

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Launched the food industry's first

Carbon Reduction Label with the

Carbon Trust on Walkers Crisps Improved water intensity ratio

across all of our operations

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Committed more than $16million to organizations working

to bring safe water todeveloping countries

Incorporated consideration of environmental sustainabilityissues and opportunities as partof every capital expenditureevaluation for projects greater



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Problems

Tampering

During the summer of 1993, PepsiCo

managed to stave off a runaway hoax

pertaining to alleged product tampering.

Syringes were claimed to have been found

in cans of Diet Pepsifirst in Seattle, then

throughout the U.S. over the next few days.

With the arrests of several of the

fraudulent claimants, reports of found

hypodermic needles ceased.

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Problems

By June 15 1993, consumers reported

finding a bullet, pins and screws in

their Diet Pepsi. PepsiCo's subsequent

handling of the situation via carefully-

worded press releases and VNRs is

frequently cited as a textbook

example of how exactly to handlefalsely spread rumors about a

company.

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Problems

Pesticide residuals controversy

The Delhi based Center for Science and

Environment (CSE) reveals that it has

conducted a study on samples of 12 major

soft drink brands sold in the country for the

residual levels of pesticides and found the

levels to be far too high when compared

with the same in the samples from

developed countries.

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Opportunities

1. Increase Population:

As almost in all over the world

growth rate is increasing which inturn increases the demand of

products and necessities and

especially in Asia the market is

growing at a faster rate as compareto other continents. So they have to

attract new entrants.

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Opportunities

2. Changing social trend:

As in all over the world people are

rushing towards fast food andbeverage because of life which

has become much faster, it

provide the company a favor to

capture this fast moving marketwith its take away product.

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Opportunities

3. Diversification:

They may enter in garments business

in order to promote their brand mane,

by making sports cloths fro playerswhich represent their name by

wearing their clothes.

4. Distribution of snack foods:

Opportunity to distribute Pepsi snack

foods in the future.

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Risks

1. Imitators:

They also have a problem of

imitators as receives complaintsfrom customers that they find

take product in disguised of

Pepsis product.

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Risks

2. Government Regulation:

They face problem if government

employ taxes on them whichforce them to raise the price of

their product.

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Risks

3. Corporations shortage problem:

Again this is also a serious threat

from it suppliers as if supplier isunhappy with the company. He may

reduce the supply and exploit the

company. This action will surely

affect the production process.

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Risks

4. Non-carbonated substitutes:

Non-carbonated substitutes, such

as juices and tea brands aremaintaining a strong foothold in

the market.

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Benefits

Health and Insurance Benefits

As an employee, you can choose the Health

and Insurance Benefits that are right for you

and your family. Benefit options include: ± Basic and Enhanced Medical and Dental

± Vision

± Life Insurance

± Short and Long Term Disability ± Health Care Reimbursement Account

± Dependent Care Reimbursement Account

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Benefits

Wellness Benefits

While good health is its own reward,

PepsiCo offers the Health Roads Wellness

Benefit to help you take positive steps

toward a healthier lifestyle. You can earn

rewards, deposited into your Medical

Expense Account, by participating in the

program, up to $400 dollars per family, per

year.

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Benefits

Plan For Your Future

PepsiCo is committed to giving you the tools to

reach your future retirement goals through our

retirement, savings, and stock plans. The plans,designed to work together, include:

± SharePower - PepsiCo's global stock option program (no

enrollment necessary).

± Pension Plan - A 100% PepsiCo paid retirement benefit.

± 401(k) Plan: A pre-tax savings plan with matchingcontributions from PepsiCo.

± Stock Purchase Program: A convenient way to buy

PepsiCo stock.

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Benefits

Work/Life Benefits

Save time, cut costs, and reduce stress, with

PepsiCo's Work/Life Benefits including:

± Employee Assistance Program (EAP)

± Adoption Assistance

± Auto and Home Insurance Program

± Family Leave

± Ford & GM Car Discount Programs

± Tuition Reimbursement/Educational Assistance

± Service Awards

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Pepsi Cola U.S. Beverages

Current Organization Chart

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Security and Privacy Impacts

PepsiCos technological resources,

including computers, voicemail, e-

mail and Internet access, are not be

used for proper purposes in a

manner consistent with the Code

and all other Company policies,

including those related todiscrimination, harassment and

intellectual property.

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As with all PepsiCo assets, these

resources are to be used for

business purposes. It is generally

not PepsiCos intent to monitor

Internet access or messages on

the voicemail and email systems.

However, the Company reservesthe right to do so in appropriate

circumstances, consistent with

applicable laws and regulations.

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If you have access to PepsiCo information

precautions necessary to prohibit

unauthorized access to the system. You

should safeguard your passwords or othermeans of entry. Employees must not

reproduce software assets licensed to

PepsiCo, use illegally obtained software or

distribute the original software media orunauthorized copies of software which the

Company does not own or license.

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Product Line

Pepsi

a carbonated soft drink

produced andmanufactured by

PepsiCo. The drink was

first made in the 1890s

by pharmacist CalebBradham in New Bern,

North Carolina.

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Product Line

Mountain Dew

Although its formula was

invented in Marion,Virginia, it was first

marketed in Knoxville and

Johnson City, TN through

the 1940s. It is the 4thbest selling carbonated

soft drink in the United

States.

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Product Line

7 Up

is a brand of a lemon-

lime flavored non-caffeinated soft drink. It

was created by Charles

Leiper Grigg who

launched his St. Louis-based company The

Howdy Corporation in

1920.

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Product Line

Mirinda

Mirinda is a brand of soft

drink available in fruitvarieties. The orange

flavour of Mirinda

represents the majority

of Mirinda.

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Product Line

Mug Root beer

Mug was first produced

by the Belfast BeverageCompany in San

Francisco, California

during the early 1950s.

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Product Line

Gatorade

is a flavored non-

carbonated sports drink.

Intended for consumptionduring physically active

occasions, Gatorade

beverages are formulated to

rehydrate and replenish

fluid, carbohydrates and

electrolytes.

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Product Line

Tropicana

it has whole pulp sacs

containing real juice from

real fresh orange fruits.

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Product Line

Sting Energy drink

Is an energy drink with

ginseng sold and produced

mainly in Vietnam andPhilippines by Pepsi .

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Physical Environments

Human Sustainability:

Nourish consumers with a broadrange of convenient, great-tasting

foods and drinks - from treats and

simple refreshments to positive

nutrition; make the healthy choicean easier choice to make.

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Environmental Sustainability:

Conserve our natural resources;operate in a way that minimizes our

environmental footprint with the

goal of reaching a net-neutral

impact.


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Talent Sustainability:

Developing our employees bycreating a diverse and inclusive

culture and making certain our

company is an attractive

destination for the world's bestpeople.


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Equipment / Operational Cost

Analysis

Our operating results may be

adversely affected by increased

costs, disruption of supply or

shortages of raw materials andother supplies.

We and our business partners

use various raw materials and

other supplies in our business.

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Analysis

Fuel and natural gas are also important

commodities due to their use in our

plants and in the trucks delivering our

products. Some of these raw materialsand supplies are available from a

limited number of suppliers. We are

exposed to the market risks arising from

adverse changes in commodity prices,affecting the cost of our raw materials

and energy.

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Analysis

The raw materials and energy which we

use for the production of our products

are largely commodities that are subject

to price volatility and fluctuations inavailability caused by changes in global

supply and demand, weather conditions,

agricultural uncertainty or governmental

controls.

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Analysis

We purchase these materials and energy

mainly in the open market. If commodity

price changes result in unexpected

increases in raw materials and energycosts, we may not be able to increase

our prices to offset these increased costs

without suffering reduced volume,

revenue and operating income.

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Financial / Profitability of the

Company

Shareholders--We provide

shareholders with a strong return

on their investments. In 2008, we

paid $2.5 billion in dividends and

provided shareholders with a 12

percent return, which is stock

appreciation plus dividendsreinvested.

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Employees--We directly employ

approximately 198,000

employees.Our customers and

business partners, such as

franchised bottlers and

licensees, employ tens of

thousands of additional peopleas they manufacture and

distribute our brands.

Financial / Profitability of theCompany

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Retailers--We create income and

profit for our customers, which

means jobs and opportunities in

millions of retail establishments

around the world. Our brands are

among the most profitable brands

that retailers carry.


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Suppliers--We purchase millions

of dollars of supplies, services

and raw materials that help to

support hundreds of thousands

of additional jobs in

communities around the world.


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Governments--Our businesseshave a positive impact on theeconomies of the countries and

localities in which we operate bygenerating billions of dollars of revenue for governments throughtaxes paid directly by PepsiCo and

indirectly by PepsiCo employees,investors, commercial partnersand suppliers.


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Technology--We share expertise

and technologies that provide

important benefits to

communities and countries. Inemerging markets, such as India

and China, our agricultural

development programs havesignificantly improved crop

yields for local farmers.


Pepsi - Malillin 12 02 09

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