PEPSICO’S TURNING POINT: ESTABLISHING A ROLE IN SUSTAINABLE SOCIETY Harvard Case Solution & Analysis

PEPSICO’S TURNING POINT: ESTABLISHING A ROLE IN SUSTAINABLE SOCIETY Case Solution

Introduction

Moreover, the company has several famous brands attached to its name such as Pepsi, Tropicana, Quaker, Lays, Frito-Lay and Gatorade.

            Moreover, these brands are not the only brands which the company produces, the company also produces sub brands under the umbrella of each of the above brands. Furthermore, the company is working in so many countries of the world as it has been seen that the global footprint of the company lies in almost 200 countries.

            In addition, the company also has billions in revenue as it has been noticed in 2009 that the company had almost USD 108 billion in revenues. Furthermore, the company has a strong footprint in the food and beverage industry of the world especially in America while the company have many potential competitors such as Coke but the company’s strong strategy and brand awareness allows it to compete successfully in the industry.

Problem Statement

            The company was working in the industry successfully but the company faced some problems as the company was facing criticism due to its processed food products. Also, the majority of the food and beverage companies were facing the same problem but PepsiCo had a more significant influence of this problem on it due to its larger size and huge product line.

            Furthermore, the industry had become saturated due to which the company was facing growth issues, the consumers were switching to other healthy organic alternatives options because of the unhealthy processed foods. Finally, the company was facing criticism due to rising health issues caused by the processed food. However, the main issues were obesity in children among all the health related issues.

Why have major producers of processed food been criticized?

            There are several reasons due to which industry’s major players have been criticized however, the main reason among all of them was that the people were facing health issues due to consuming processed food. However, PepsiCo was also responsible for the contribution towards these health issues.

            Since, the company had a major product line through which the company was producing large quantity of processed foods. Moreover, it has been noted that the main issue was obesity in children due to consuming high calorie and unhealthy processed food.

            Moreover, a number of scientific studies proved that processed food is not good for health and increasing public awareness and increasing usage of social media allowed consumers to get awareness about the side effects and other disadvantages of the processed food.

            Finally, the above factors were the reasons which caused the Food and beverage industry to be criticized and also, the consumer were looking for healthy organic alternative. In a nutshell, this issue was also leading the industry towards low profitability.

            The main reason behind the reluctance of the industry members is that the lifestyle of the society was changing and due to this people started to seek healthier alternatives as compared to processed food. While the industry members if shift towards organic food, they have to completely change their business direction.

            Moreover, this will incur high switching cost since, the industry members will have to change their production and manufacturing technology while they will also have to completely change their production lines.

            Furthermore, the industry members will have to change their business strategy, marketing channels and they will also have to compete with organic food suppliers. However, this change will require complete transformation of the whole business which will not be easy...................

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