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Coca-cola sustainability case study
Coca-cola sustainability case study
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PepsiCo PepsiCo is one of the foremost food and beverage companies in the world and sells its products of Pepsi, Frito Lay, Tropicana, Quaker, and Gatorade in more than 200 countries and territories world wide (PepsiCo, 2014). With the large size of PepsiCo and the substantial volume of products produced and sold around the world having a having a swift, seamless, integrated, and cost effective supply chain is essential to the well being of the company. The mission of PepsiCo is to grow its business into a world-class food and beverage company while providing growth to its employees and financial rewards to its investors (PepsiCo, 2014). The supply chain for PepsiCo is an integral piece of the company that needs to run flawlessly in order for PepsiCo to attain its mission. The Supply Chain There are many steps in the supply chain for PepsiCo and a few include attaining the raw goods necessary for production, storage of raw goods, and storage of its finished products. PepsiCo recently overhauled part of its supply chain for its Pepsi brand when it came to the conclusion that ...
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Analysis of the carbonated soft drink (CSD) industry shows that there are 2 important players i.e. Concentrate Producers and Bottlers. Focusing on the downstream of the supply chain it is to be pointed out that concentrate producers incure relatively low fixed costs with respect to production plant, staff, equipment and R&D as the concentrate is produced of a more than 100 years old formula and relatively cheap raw material (e.g. caffeine). Concentrate is shipped to bottlers which incure relatively high fixed cost with respect to plant, equipment and staff and which add carbonated water and high fructose corn syrup to the concentrate, bottle or can, package and ship it to the respective retailer. Besides that CDS hold a big stake in the direct delivery of concentrate to diverse fountain accounts like McDonalds, Burger King etc.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product.
...CS.com, 2005). The key to the success of this partnership between UPS and Adidas is the single, streamlined (integrated) supply chain that allows them to view all aspects/processes within it and to adjust when and wherever necessary. Visibility throughout the entire supply chain process produced results for Adidas by increasing order accuracy, improved customer satisfaction, and a boost in on-time deliveries. Flexibility is the key process that is needed in the supply chain integration processes, the ability to ramp up or ramp down operations can make a world of difference in operations and meeting customer demand.
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
The social responsibility activities of PepsiCo emphasizes on sustainable agriculture, water use efficiency, alternative sources of energy, packaging, wasting, and recycling. The company is also promoting a healthy lifestyle with product like whole grain snack and vitamin beverage. PepsiCo makes sustainability an innate part of their company culture to improve their business strategy and gain competitive advantage. According to Triple Pundit website, PepsiCo reached two years early its 2015 goal of delivering potable water. The sustainability report shows PepsiCo’s effort to nourish customers with healthy products. By going green, companies like PepsiCo have been able to adapt to the expectation of the toda...
Different markets across the world follow different set of regulations, which are either relaxed or severe. Competitive pricing is a factor, which the firm should keep in mind all the time. The scenario is very important because there can be civil disturbance, fall in sales due to inflation, or cross-border situations. As a result, Pepsi has to stay updated with all changes and policies in order to adapt. e. SWOT Analysis: i. Strength’s:
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
A supply chain provides the means by which a company brings its products or services to the market. For a supply chain to be effective, all of the involved parties must be aligned to common goals and the company’s supply chain strategy. For the value of the supply chain to be maximized and cost savings realized, a company supply chain strategy must be executed efficiently. Many parts of the supply chain contribute to help the franchise system achieve quality goals. It can be achieved by offering uniform, high quality products and services to its customers.
PepsiCo's mission listed on their website said as follows: "Our mission is to be the world's premier consumer products company focused on convient foods and beverages. We seek to produce finanical rewards to investors, business partners, and communities in which we operate. And in everything we do, we strive for honesty, fairness, and intergrity." Their mission is done through programs with environmental care, activities that aid the society, and a commitment to build shareholder value. PepsiCo puts significant emphasis on shareholders throughout all aspects of the company.
Coca-Cola is stress in their customer relationship as an organization. For example, Coca-Cola will corporate closely with their largest customers in order to build up versatile relationship. Moreover, operational linkages and information sharing system is important for keeping the product and service that offered is suit with the customer’s needs and wants. Coca-Cola has refined their collaborative customer relationship process in three main markets which are Mexico, Japan and Switzerland. They work with their customers in order to provide the better-quality beverage selection to every consumer. For instance, Oxxo which is a convenience store chain that has 5700 stores in 30 states in Mexico has recognized the Coca-Cola Mexico’s Collaborative Customer Relationship program. This program helps Coca-Cola and their customers to understand the consumer preference. On the other hand, it enables Coca-Cola to transfer a transactional and commercial link to a collaborative and multifunctional business relationship.