Solution
Abhinaba answered on
Mar 25 2021
1
Value Chain Management of PepsiCo
Value Chain Management of PepsiCo
Table of Contents
Introduction 3
Analysis of PepsiCo’s Value Chain 3
Primary Activities 3
Inbound Logistics 3
Operations 4
Outbound Logistics 5
Marketing and Sales 5
Service 6
Support Activities 6
Infrastructure 6
Human Resource Management 7
Technological Development 7
Procurement 7
Target Customers of PepsiCo 7
Key Suppliers of PepsiCo 8
Partners of PepsiCo 8
Competitors of PepsiCo 8
Evaluation of the Performance of the Logistics and Supply Chain of PepsiCo 9
Recommendation 10
References 11
Introduction
Over the years the food and beverage industry has become prone to competitiveness. There is a requirement for the sustenance of growth for ensuring better quality products. PepsiCo is one of the leading food and beverage corporations in the United States of America. PepsiCo has ensured its global presence as well as widened the distribution network by undertaking strong global sales. PepsiCo operates its business in countries like America, India, Malaysia and many more. PepsiCo has gained competitive advantages in its business due to its strong value chain management. PepsiCo has been functional in keeping their investment in the digital marketing sphere. It has been effective for the growth of the engagement of the customers and therefore the retainment of the competitive advantage was possible even amidst heavy competition from other
ands. However, one of the primeval factors which are to be put forth will show that those supported the growth as well as the success of Pepsico on a global scale, that is its supply chain. This assignment will venture into the company’s understanding of optimizing its value chain which will be effective for achieving the best possible results. It will, therefore, cater to the demands of the customer with higher efficiency.
Analysis of PepsiCo’s Value Chain
Value chain is a set of operations performed by the organizations to deliver valuable product to their customers. PepsiCo’s value chain is consisted of two activities such as primary activities and support activities.
Primary Activities
Inbound Logistics
The portfolio of PepsiCo invests in many
ands such as Pepsi-Cola, Tropicana, Gatorade, Mountain Dew, Diet Pepsi and many more. Each
and belong to PepsiCo earn huge amount of revenues in their retail sales. The inbound logistics of the
ands within PepsiCo portfolio reflects the quantity and quality of the raw material used in their food products. The inbound logistics of PepsiCo also reflects the vicinity between the locations of the suppliers and manufacturing site. The inbound logistics help PepsiCo in obtaining cost advantages, which add value to PepsiCo. PepsiCo locates their production sites near to such geographical areas, from where they can easily obtain raw materials for their food products. Therefore, having production sites near to the geographical areas, which are main source of materials have benefitted PepsiCo’s value chain by saving the transportation cost. PepsiCo’s value chain is benefitted by adapting the 3D printing technology (Research Methodology, 2016). For instance, PepsiCo is using 3D printing technology to create optimal potato chips prototype.
Operations
The operations of PepsiCo’s are allocated into the six following segments.
FLNA (Frito-Lay North America)
The segment of Frito-Lay North America is used for manufacturing, marketing, distributing and selling the
anded snack food products of PepsiCo.
QFNA (Quaker Foods North America)
This segment is used to produce, market, distribute and sell
anded products such as cereals, rice, pasta and many more.
Latin America
The segment of Latin America is used to produce, market, distribute and sell various snack foods of PepsiCo’s sub
ands for the Latin American market. These snack food
ands are incorporated with Doritos, Ruffles, Lay’s, Tostitos and many more.
AMENA (Asia, Middle East & North America)
The segment of AMENA is used to manufacture, market, distribute and sell ample of eminent snack foods of PepsiCo’s sub
ands such as Lay’s, Kurkure, Chipsy, Doritos, Cheetos and Crunchy through consolidations or through unconsolidated subsidiaries.
ESSA (Europe & Sub-Saharian Africa)
This segment is used by PepsiCo to produce, market, distribute and sell ample of
anded snacks food...