Analysis of the core competences of PepsiCo

Analysis of the core competences of PepsiCo PepsiCo is an organization that has been known for its marketing and distribution prowess. This section is dedicated to analyzing the core competences of PepsiCo and evaluating their effect on the strategy adopted by the organization. Tangible Resources In this section, we analyse in detail, the tangible resources of PepsiCo under the following heads: Financial Resources PepsiCo has a strong financial backbone to support its aggressive marketing strategies, promotional campaigns and social activities. It works in collaboration with various governments in the countries that it operates and has operational ties with various civic authorities. Its capacity to generate finances is showcased by the fact that it could raise 31.37 billion rubles from a Ukrainian juice manufacturer, WBD which it acquired last year  [i]   Organisational Resources- PepsiCo recently revamped its organizational structure in an effort to handle the double digit growth prospects. It has three broad units, each of which looks after a sizeable business. The CEO of the company Indra Nooyi is known to be a flamboyant leader. She is known to lead by delegation and empowerment. This increases the loyalty of the employees towards the organization  [ii]  . Physical Resources PepsiCo has state-of-the-art manufacturing plants at three locations in India  [iii]  . In addition to this, it has 37 bottling plants, of which 17 are owned by PepsiCo. These are spread all over India, which help in increasing the reach of its products and ensuring timely delivery. Technological Resources PepsiCo tries to keep itself abreast of the latest technological developments. In a recent step taken, it has added hydrogen injected trucks to its delivery fleet in Canada  [iv]  . This was done as an effort towards increasing the fuel efficiency of its fleet and reducing emissions. Intangible Resources We look at the various intangible resources held by PepsiCo under the following heads: Human Resources PepsiCo attracts some of the best minds in the industry. By providing them enough financial and non-financial motivation and handing them challenging tasks to perform, they keep their employees satisfied and loyal to the organization. Innovation Resources The pace of innovation in functional foods and beverages division in PepsiCo has picked up since 2002. PepsiCo is second, after Kraft in this industry with 101 innovations since then. Some competitors are outspending PepsiCo on RD investments by nearly two to one margin  [1]  . But PepsiCo has been making good use of every dime spent on the RD as is seen from the number of innovations vis-à  -vis its competitors. Reputational Resources In a study conducted , it was seen that Pepsi as a brand enjoys a good reputation with the customers. They like it for its distinct taste. The study also pointed out that the brand name of Pepsi is certainly a force to reckon with. The quality perception of the product is generally high. However most of the customers see it as a drink second to Coke. One area wherein PepsiCo scores over its rivals is the social initiatives like contract farming and positive water balance. Due to this, it has a very strong reputation with its suppliers. Capabilities PepsiCo as an organization, has survived strong competition from its more established rivals like The Coca Cola Company , Nestle among others due to the following capabilities that it has:  [v]   Muscular Global Brands and Consumer Goodwill Over the years, PepsiCo, with its portfolio of global brands, has built platforms for growth. Its highly focused portfolio offers many of the worlds best-known foods and beverages-brands of enduring appeal. The portfolio includes 15 brands that each generate more than $1 billion in annual retail sales. Thats more than any other food and beverage company. Pepsi leads the parade with $15.6 billion in annual sales. The company has been successful in entering into licensing ventures with other well-known names, such as Starbucks and Lipton, and has had huge success with global promotions by linking with globally recognized brands. Robust Technology/Manufacturing Platforms PepsiCos global brands are supported by sophisticated technology and manufacturing platforms. These platforms include the science of nutrition, food and beverages, process and manufacturing, and packaging. Each of PepsiCos divisions contributes to the knowledge and technology platforms, creating an institutional knowledge base that can be shared across divisions. Such sharing of best-practice knowledge creates a competitive advantage, because it allows PepsiCo to differentiate its products from competitors, and promotes innovation in products and processes. It is also a significant growth advantage: cross-fertilization between divisions allows for the creation of new products that can be brought to market. The various process and manufacturing platforms allow PepsiCo not only to improve existing products and packages, but also to create entirely new ones. Equally important, innovation gives retailers a great reason to feature products promin ently Global Footprint PepsiCo employs 137,000 people in 200 countries. Including the bottling system and other partners, it generates some $39 billion in revenues, of which 35% comes from outside North America. The company has nearly 700 manufacturing facilities worldwide, 2,100 distribution centers and 70,000 routes. In addition to its presence in North America, PepsiCo has leadership positions in Mexico, the U.K., and the Middle East. It is investing significantly in creating momentum in the critical emerging markets of China and India. In the Indian subcontinent, Pepsi Beverages International (PBI) has more than 45% market share of carbonated soft drinks (CSD). FLI also has a strong global presence, with sales in 44 countries supported by 71 manufacturing plants outside North America, as well as 62,000 associates and 22,000 routes outside North America. In many countries, it enjoys greater than 30% market share. While 61% of PepsiCos salty snack revenues come from North America, Latin America contributes 18% of revenues, Europe/Africa contributes 17%, and Asia contributes 4% Core Competencies PepsiCo enjoys the stature of the dominant force that it is in various segments of the food and beverage industry due to its famed distribution systems. PepsiCo goes to market through a distribution network of extraordinary strength and flexibility. This is a core competency as it satisfies all the four criteria of sustainable competitive advantage i.e., it is a valuable capability, rare, costly to imitate and non-substitutable. The reason why is it so is explained below. The goal of the distribution channel of PepsiCo is to put its products within easy reach of the consumer. Because practices and customs vary by market, and because retail customers have different needs, PepsiCo has several successful models for service that it uses around the world. Direct store delivery Direct store delivery (DSD) systems are at the heart of this network. Through these systems, PepsiCo takes its products directly to tens of thousands of distribution outlets, from the tiniest convenience stores to the largest warehouse outlets. Pepsi and its bottlers personally take products into stores and set them on the shelves, helping to ensure that products are fresh and that fragile items such as chips are handled with care. It also allows PepsiCo to merchandise its brands for maximum visibility and appeal. PepsiCos systems can move new products into national distribution quickly-sometimes as quickly as a week. And because representatives call on retail customers so frequently, they know very quickly how a new product is selling. At the same time, DSD provides financial benefits to retailers. Since Pepsi handles the products and merchandising, retailers save on labor. And because these products typically are sold and restocked every few days, while retailers pay for them on 30-day cycles, Pepsi adds to a stores cash flow. In fact, PepsiCo contributes more than any other manufacturer to the revenue growth, profit growth and cash flow of the big U.S. retailers. In international markets, PepsiCo is able to adapt its distribution to reap the benefits of traditional DSD-particularly the merchandising capabilities and the reach into many retail outlets-without the costs that would burden a young or subscale business. à ¢Ã¢â€š ¬Ã‚ ¢ Broker-Warehouse Distribution- For some of PepsiCos products, traditional broker warehouse distribution is more economical and just as effective as DSD. According to this system, third-party distributors move PepsiCos products to stores, and store employees stock the shelves. This system works best for non-impulse products such as Gatorade, Quaker Oats, Tropicana Twister, or Capn Crunch cereal, which are neither fragile nor highly perishable. PepsiCos merger with Quaker dramatically expanded the companys broker-warehouse distribution capabilities, adding the large and efficient warehouse system used for Quaker and Gatorade products. To leverage that strength, PepsiCo has combined that system with Tropicanas. Additionally, the Quaker-Gatorade system is used for certain Frito-Lay snacks that are better suited to warehouse distribution. Vending and Foodservice-Every year, consumers buy more snacks and beverages from vending machines and the foodservice companies that serve stadiums, office buildings, colleges, and similar venues. By combining the capabilities of Frito-Lay, Tropicana, and Quaker, it has created one of the biggest vending and foodservice sales forces in North America, a 600-person team that already generates well over $1 billion in annual sales.

Inorganic Ions Include Those of Sodium, Phosphorus and Hydrogen. Describe How These and Other Inorganic Ions Are Used in Living Organisms.

Inorganic ions include those of sodium, phosphorus and hydrogen. Describe how these and other inorganic ions are used in living organisms. Inorganic ions in animals and plants are necessary for vital cellular activity. In body tissue they can also be called electrolytes, which are essential for electrical activity needed to support muscle contractions and neuron activation. Ions also effect how pH changes in the blood and other bodily functions. Ions are also incorporated into the structure of biological molecules. Resting potentials require ions as they play a vital role in the process. In the surface membrane of a cell there are protein carriers. These actively pump Na+ ions out of the cytoplasm to the outside of the cell. At the same time, K+ ions are pumped from the outside in. This active pumping of Na+ and K+ ions requires ATP because the ions are being moved against their concentration gradients. K+ and Na+ ions diffuse back down their concentration gradient but K+ diffuses back out of the cell faster than Na+ can diffuse back in. Which means that there is a net movement of positive ions out of the cell making the inside of the cell negatively charged, relative to the outside. This charge is the resting potential of the cell and is about -70mV. Ions are also used in action potentials. When a receptor is stimulated, it will create a positive environment inside the cell. This is caused by a change in the concentrations of Na+ and K+ ions in the cell and happens when there is a change in permeability to Na+ and K+ in the cell surface membrane at the area of stimulation, which causes Na+ channels in that area to open, Na+ therefore floods into the cytoplasm down the concentration gradient. As this happens the membrane depolarizes. If this depolarisation reaches a certain level, called the threshold level then an action potential has been generated and an impulse will be fired. If it does not reach this level, nothing will happen. Once +40mV is reached the Na+ channels close and K+ channels open. K+ floods out of the cytoplasm so that the overall charge inside goes back down. This stage is called repolarisation. The K+ channels then close, the sodium-potassium pump restarts, restoring the normal distribution of ions either side of the cell surface membrane and thus restoring the resting potential. In response to this the Na+ channels in that area would open up, allowing Na+ ions to flood into the cell and thus reducing the resting potential of the cells. If the resting potential of the cell drops to the threshold level, then an action potential has been generated and an impulse will be fired. In photosynthesis H+ ions are vital in the production of the energy source that is ATP, which is used in several metabolic processes, such as respiration. The photolysis of water produces H+ ions, electrons and O2. The excited electrons lose energy as they move along the electron transport chain, this energy is used to transport the H+ ions (protons) in to the thylakoid, which causes a higher concentration of H+ than there is in the stroma, thus causing a proton gradient across the membrane. The H+ then proceed to move down the concentration gradient into the stroma via the enzyme ATP synthase. The energy from this process is called chemiosmosis and combines ADP with inorganic phosphate (Pi) to form ATP. Light energy is then absorbed by photosystem I (PS I) which excites the electrons to a higher energy level. These electrons are transferred to NADP with H+ ions from the stroma to form reduced NADP. The whole of this process is called non-cyclic photophosphorylation and is part of the ligh-dependent reaction. Reduced NADP is used with ATP to make GALP in the light independent stage of photosynthesis. GALP is either used to replenish ribulose bisphosfphate, a key ingredient for respiration, or make a hexose sugar such as glucose, lipids or amino acids. By means of conclusion, inorganic ions are vital for life on planet Earth. Without ions such as nitrate ions, DNA would not be exist and thus nor would existence.

Internet Marketing A Marketing Platform Essay - 1015 Words

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Memo Assignment - Free Essay Example

Sample details Pages: 1 Words: 441 Downloads: 7 Date added: 2017/09/15 Category Advertising Essay Did you like this example? Memo Assignment Darla S HCS 514/Managing in Today’s Health Care Organizations Tracy Miller September 6, 2010 MEMO TO: John Smith, CEO FROM: Darla Selbrede DATE: September 6, 2010 SUBJECT: Design and functionality of Riverside Hospital Abstract: This memo is an introduction of Riverside Hospital which will focus on facility design and functionality. Its purpose is to provide a generalized picture of how this facility operates and how employees provide optimal service to patients. Facility Design Riverside Hospital has a combination of centralized and decentralized design. The centralized design of the organization includes hierarchy procedures, guidelines, and processes that are regularly useful in order to regulate operations of particular activities. These activities are those seen in management, finances, marketing, accreditation, and legal issues. In contrast, the decentralized design of the organization includes activities more closely related to patient care. Don’t waste time! Our writers will create an original "Memo Assignment" essay for you Create order This decentralization of the organization encourages enthusiasm and creativity, permits critical thinking from different care givers, and accommodates flexibility and autonomy. Riverside Hospital is conveniently located in Rapides General Hospital in order to accommodate patients and health care workers. This locality helps to better serve patients because they are able to utilize Rapides General Hospital’s resources such as its radiology and laboratory services. The hospital is also centrally located in the city of Alexandria, Louisiana which provides greater access to the community. Facility Functionality Riverside Hospital is a long term acute care unit with 28 private rooms which includes two suites. This facility is able to care for patients who are not healthy enough to return home. The types of patients cared for at this facility are those who need extended stays for things such as severe wounds, respiratory failure, postoperative care, and trauma. Riverside Hospital has qualified nursing staff and certified nursing assistants. Respiratory therapists are available 24 hours daily to provide respiratory needs including weaning patients off ventilators. There is a physical therapy department which includes physical therapists, occupational therapists, and a speech therapist to help patients return to their optimal level of independence. The social worker helps to provide discharge planning which starts the day of admission to utilize resources that may be needed. There is a registered dietician who provides dietary recommendations and education for the patient. Riverside Hospital has an onsite pharmacy with a pharmacist available 24 hours a day. Summary The organizational design at Riverside Hospital is important to its success. Each part is necessary in order for the facility to maintain its stability as a business while providing an optimal working environment for its employees. Each employee at Riverside Hospital is considered a part of the health care team which focuses on the main goal of this organization quality patient care.