PepsiCo is an American multinational corporation headquartered in New York and operating in many parts of the world. PepsiCo is a world leader in convenient foods and beverages, with annual revenue of $66,683 million and over 271,000 employees (MarketLine, 2015). The company consists of snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods. The industry in which PepsiCo operates is very competitive and has global brands such as Coca-Cola Inc. However, PepsiCo has developed a niche for itself with targeting specific demographic groups and marketing directly to them. Over the years PepsiCo has become a highly recognizable brand name, and continues to demonstrate large profits worldwide.
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These segments were PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International. Despite the company’s growth into world markets, PepsiCo remains highly dependent on the United States market for revenue. The profitability of its United States markets is still far greater than that of its international operations. According to Hoover’s Inc. (2015), PepsiCo’s domestic market accounted for 71.2% of total revenue in 2014, while only 28.81% of total revenue was made by its international operations. The overdependence on the United States markets leaves PepsiCo susceptible to the impact of changing economic conditions. PepsiCo’s largest customers in the United States could take advantage of their lack of bargaining power, which would negatively impact their …show more content…
Additionally, the company used customer relationship management systems to gather information about what Chinese consumers were looking for and to better manage their customer relationships (Deogun, 1997). Swink, Melnyk, Cooper, and Hartley (2014) emphasize the importance of customer management stating, “A basic principle of supply chain management is that companies must segment customers based on their needs and adapt supply chain operations to serve those segments” (p. 324). These systems allowed PepsiCo to combine its core business processes, such as manufacturing, selling, and distribution, with real time data to be captured at every step in its value chain. As a result of using automated data and business process information, PepsiCo was able to negotiate better contracts for raw materials and lower operating costs (Deogun,
These segments were PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International. Despite the company’s growth into world markets, PepsiCo remains highly dependent on the United States market for revenue. The profitability of its United States markets is still far greater than that of its international operations. According to Hoover’s Inc. (2015), PepsiCo’s domestic market accounted for 71.2% of total revenue in 2014, while only 28.81% of total revenue was made by its international operations. The overdependence on the United States markets leaves PepsiCo susceptible to the impact of changing economic conditions. PepsiCo’s largest customers in the United States could take advantage of their lack of bargaining power, which would negatively impact their …show more content…
Additionally, the company used customer relationship management systems to gather information about what Chinese consumers were looking for and to better manage their customer relationships (Deogun, 1997). Swink, Melnyk, Cooper, and Hartley (2014) emphasize the importance of customer management stating, “A basic principle of supply chain management is that companies must segment customers based on their needs and adapt supply chain operations to serve those segments” (p. 324). These systems allowed PepsiCo to combine its core business processes, such as manufacturing, selling, and distribution, with real time data to be captured at every step in its value chain. As a result of using automated data and business process information, PepsiCo was able to negotiate better contracts for raw materials and lower operating costs (Deogun,