Pepsi CO Performance with Purpose Elena Zhogol 879

Pepsi. CO Performance with Purpose Elena Zhogol #879 Ivanna Smyrnova #878 Alina Pashkevich #893 Lesya Koshel #899 Max Yefimov #900 Date: 14. 11. 2012 1

Case and outline Our task was: Read the intro & the letter to shareholder (Pepsi. Co) from the CEO. We had to give an answer the following questions: üdescribe the vision of Pepsi. Co. üis the vision articulated by the CEO sufficiently clear and well defined? Why or why not? üare the company’s objectives well stated and appropriate? üwhat about the strategy that the CEO outlines for the company? If you were a shareholder, would you be satisfied with what the CEO has told you about the company’s direction, performance targets and strategy? 2 WIUU Business Policy, 2012. N. Syrotiuk

Pepsi. Co Vision Pepsi. Co's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today. 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 Pepsi. Co a truly sustainable company. 3 WIUU Business Policy, 2012. N. Syrotiuk

Pepsi. Co. Performance with Purpose ü Pepsi. Co came to the conclusion that ‘ethics and growth are not just linked, but inseparable’ üPerformance with Purpose means delivering sustainable growth by investing in a healthier future for people and our planet üCompany respect, support and invest in the local communities where we operate, by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups üThe vision of Pepsi. Co revolves around what is good for the society - is good for business. 4 WIUU Business Policy, 2012. N. Syrotiuk

Pepsi. Co Portfolio üFun-for-You Portfolio These products are part of Pepsi. Co’s core food and beverage businesses. üBetter-for-You Portfolio These are foods and beverages that have levels of total fat, saturated fat, sodium and/or added sugar that are in line with global dietary intake recommendations. üGood-for-You Portfolio These are foods and beverages that deliver positive nutrition through the inclusion of whole grains, fruits, low-fat dairy, or significant amounts of important nutrients 5 WIUU Business Policy, 2012. N. Syrotiuk

Pepsi. Co’s CEO defenition of the vision üThroughout the speech Indra Nooyi emphasizes the importance of the social involvement of the company and provides the evidence of what it brings, but also she makes a stress on creating financial value for investors of the company. üShe highlights three core planks that make the vision: o. Human Sustainability o. Environmental Sustainability o. Talent Sustainability üAs customers - – there will be a problem with defining the vision because everybody knows that one third of Pepsi. Co product portfolio is not healthy product. üAs shareholders - we can see clearly were company wants to be and what value create 6 WIUU Business Policy, 2012. N. Syrotiuk

Pepsi. Co’s Objectives üTo build and extend the macro snack portfolio üTo sustainably and profitably grow the beverage business worldwide üTo unleash the power of the Power of One üTo build and expand the nutrition business üTo cherish the Pepsi. Co associates üDo adds up to excellent financial performance Talking in general - company is projecting its goals emphasizes on each side of the company activity, it perceives that goals set by company will benefit each who is involved in production, consumption, investment and maintenance of the business. 7 WIUU Business Policy, 2012. N. Syrotiuk

Pepsi. Co’s Strategy üWork on product specifications that correspond to local tastes. üContinue to aggressively invest in fast-growing emerging and developing markets. üFocus on growing North America beverage business sustainably for the future üTo retain operating capability within each sector while centralizing the innovation and development of increasingly in-demand healthier products (grow Good-for-You portfolio of products). 8 WIUU Business Policy, 2012. N. Syrotiuk

Shareholders satisfaction üThe strategy is well thought about and socially oriented, what fits perfectly to the vision of the company. üThe company is focused on outstanding performance, financial performance as well. In every suggested way feels the compassion for the company, its growth and people who are working in it. üIt is set to widen the horizons of the company but at the same time not to lose the focus on the performance. üCompany creates not only financial value for themselves and their shareholders but also some moral values that we can see in company’s vision and culture. If we were shareholders, we would definitely be satisfied and proud of what the CEO had told me during the meeting. 9 WIUU Business Policy, 2012. N. Syrotiuk

Thank you for your attention! Date: 14. 11. 2012

Sources ü Pepsi. Co 2010 Annual report ü http: //www. pepsico. com/company/our-mission-and-vision. html 11 WIUU Business Policy, 2012. N. Syrotiuk