Financial Statement Analysis (FSA) of PepsiCo Inc.

PEPSICO
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PEPSICO
Primary Products and Services​
The primary products and services offered by PepsiCo Inc. can be grouped into six main categories. First, the company offers beverages as its main products. The beverages category is made up of carbonated drinks such as Pepsi, 7Up, and mountain mist among others; the sports drink categories that are made up of brands such as Gatorade; juices and related drinks are made up of brands such as Naked and Tropicana; ready to drink teas that are made up of popular brands such as Pure Leaf and Lipton; and coffee drinks. Second, the company offers snacks in the form of potato chips through popular brands such as Ruffles and Lay’s; corn chips through popular drinks such as Doritos and Fritos; pretzels through famous brands such as Rold Gold; popcorn through famous brands such as Smartfood; and snack mixes through popular brands such as Munchies and Cracker Jack (PepsiC0, 2022).
Third, the company offers a range of nutritional products in the form of Quaker Oats, granola bars, and sports beverages under the brand name Gatorade. Fourth, the company offers a variety of convenience store products that include beverages, snacks, and other items. Fifth, the company provide food service solution in the form of hotel equipment and other related services (PepsiCo, 2022). Sixth, PepsiCo has a Creative Content Agency that helps clients develop and execute marketing campaigns across a variety of media channels.
Primary Customers and Market
Notably, the company serves diverse and widespread primary customers and markets given that the company operates in multiple segments within the food and beverage industry. One of the primary customer groups and markets is retail consumers whose main contact points with the company include grocery stores, convenience stores, and other retail outlets. To this end, the company’s product appeal to a broad range of consumers across different age groups and demographics. Second, the company also markets its products to food service businesses and convenience store operators. That is, the company sells its products to food service businesses and convenience stores who can then sell the products to on-the-go customers. Third, the company also sells its products to sports teams and athletes. To this end, Gatorade is one of the leading brands in the sports drink markets with most athletes and teams using the drink for nutrition and hydration purposes during workouts (PepsiCo, 2022).
The company operates in both local and international markets. PepsiCo has a significant presence in international markets and caters to local tastes and preferences through its regional brands and product offerings. The company's products are sold in more than 200 countries, and international markets account for a significant portion of its revenue.
Description of Competitive Environment​
The company operates in highly competitive categories and must contend with competition from other players who operate in local and international markets. The primary competition comes from Coca-Cola, with other competitive players in the industry including but not limited to Kellogg Company, Keurig Dr. Pepper, the Kraft Heinz Company, Monster Beverage Company, Red Bull GmbH, Homel Foods Corporation, Nestle S.A., and Conagra Brands Inc. In the United States, Pepsi and Coca-Cola dominate the liquid refreshment beverage category (PepsiCo, 2022). However, Coca-Cola enjoys a larger market share in the various markets that are located outside of the United States.
Notably, Pepsi’s success in the industry is heavily dependent upon brand recognition and customer loyalty. To remain competitive, the company must make a significant investment in the marketing and promotion of its products as well as research and development. That is, the company must consistently promote its existing products to customers while making sure that it develops new products that are intended to respond to changing customer preferences. At the same time, the company must increase the efficiency of its distribution networks so that it can compete effectively.
Description of Corporate Sustainability and Human Capital​
PepsiCo is committed to operating its business in a way that minimizes its environmental impact, promotes social responsibility, and creates long-term value for its stakeholders. To this end, the company has set ambitious goals to reduce its environmental impact and invested in sustainable practices intended to reduce its carbon footprint (PepsiCo, 2022). In addition, the company commits to the promotion of social responsibility through positive contributions in the countries it serves. A significant aspect of the company’s corporate sustainability has been its commitment to sustainable sourcing of its ingredients through the implementation of products intended to promote sustainable farming.
Regarding human capital, PepsiCo believes that the long-term success of the company is heavily dependent on its human capital management practices. To this end, the company must make consistent efforts to attract, develop, and retain a high-quality workforce. As of the end of December 2022, the company had a workforce of 315,000 people, with 132,000 of them based in the United States (PepsiCo, 2022). The company has entered into collective bargaining agreements with various parties and strives to maintain good relations with its employees. The company has made a significant investment in making sure that they create an injury-free workplace and promote the health and safety of its human capital. In addition, the company has established a culture of diversity and inclusion on the basis that diversity fuels innovation and enhances the company’s reputation. To this end, the company ensures that it sustains a workforce that represents the various communities they serve. PepsiCo invests heavily in the continued growth of its employees using various training and development programs that enhance the leadership and professional skills of its employees.
CEO Name and Brief Biographical Information​
The current chief executive officer of PepsiCo is Ramon Laguarta. Ramon is a Barcelona native and a holder of a Master of Business Administration from Spain’s ESADE business school. He was appointed to the position in 2018 and serves as the Chairman of the Board of Governors since 201...