Analysis Of Pepsico Vision Statement Business Essay

Modified: 1st Jan 2015
Wordcount: 2165 words

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PepsiCo is a company which is most successful well-known brands in the world. Pepsi Company is nationally and globally to operating in non-alcoholic beverage industry, soft drink industry, and savoury snack industry. Besides that, PepsiCo offers the world’s largest portfolio of food and beverage brands included 22 different product lines. And the biggest competition from competitor is Coca-Cola in soft drink industry.

Analysis of PepsiCo Vision Statement

According to vision statement of PepsiCo, I had used seven components to analysis the vision such as directional, graphic, focus, flexible, feasible, desirable, and easy to understand.

First of all, the directional component of PepsiCo is target to become a truly sustainable company by using focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value. From the case, PepsiCo has extensive statements on sustainability, the environment, health and wellness, and diversity. Pepsi Company is nationally and globally to operating in non-alcoholic beverage industry, soft drink industry, and savoury snack industry. PepsiCo is able to expansion market to serve new market segment by provides health and safety product to make consumer more confidence to purchase and become a sustainable company.

Besides that, the graphic component of PepsiCo is not appearing in the current vision statement. From the current vision, it has no mention about company management is create and the market position the company is striving to stake out.

Moreover, the focus component of PepsiCo is focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value. According to the PepsiCo case which said that PepsiCo are focusing in projects to increase to use of recycled materials and reduce material used in packaging. It will help PepsiCo build a good brand image, environment friendly and good reputation. When brand image is created, it will increase brand awareness of Pepsi and easy to launch new product to serve new market segment and achieve the commitment of shareholder value. However, once the commitment with shareholder is broken it will bring negative effect to the company such as poor reputation and decrease number of invertors.

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In addition, the flexible component of PepsiCo is creating a better tomorrow than today. From the statement, PepsiCo is wanted to improve all aspects of the world to create a better future. So, it may help increase more potential profitability due to better than previous year. And, it also assists PepsiCo a step forward to be truly sustainable company. Yet, it also some aspect is uncontrollable such as new competitor and economic downturn.

Furthermore, the feasible component is about the reasonable expect to achieve in due time. From the case, PepsiCo is expecting continually to improve all the aspects of the world. PepsiCo is able to achieve this vision due to strong financial and also wide range of distribution network. It also has opportunities capture more market share around the world. However, it needs resources and times to achieve the goal.

Additionally, the desirable component is about long term interest of stakeholders. In the vision of PepsiCo, it is commitment to build shareholder value. PepsiCo has long history of delivery strong financial growth for shareholders with the powerful brand and commitment to sustainability and top global talent. Conversely, it also face problem when shareholders may disagree with PepsiCo decision making and may occur conflict belong PepsiCo and shareholder.

Lastly, the easy to understand component is about ease to communicate and understand of the vision statement. From the PepsiCo’s vision statement, it is using a clear language and simple to make customer easy to understand their vision.

Analysis of Vision Statements- Shortcomings

For the shortcoming of vision statement, I had used five components to analysis the shortcoming such as vague and incomplete, not forward looking, bland, too broad or not distinctive, and rely on superlatives.

First of all, the vague and incomplete component is about short on specific or does not provide much indication and how the PepsiCo intend to alter the current product, market, customer, and technology focus. PepsiCo is only mention about improve all aspects of the world in which they operate for their economic, social and environment. But it is missing out to mention about Pepsi product portfolio and how they treat their employees in vision statement.

Besides that, the not forward looking is about the company is not concern about the future. From the vision of PepsiCo, it has concern about the future by the sentences creating a better tomorrow than today by using improving the aspects of the world in which they are operated.

Furthermore, the bland component is about the company lacking in motivational power. From the vision statement of PepsiCo, it has commitment to achieve shareholder value, so from the commitment will motivate the shareholders to support the company.

Next, the component is too broad and not distinctive is about the vision could apply to most any company. The vision statement of PepsiCo is too common and corporate social responsibility can apply to most any company.

Lastly, the component rely on superlatives is about the vision too reliant on such superlatives as best, most successful and market leader. From the PepsiCo vision is does not mention is most successful and first choice of customers.


From the analysis of shortcomings in the vision statement of PepsiCo, I would like to give few recommendations to improve the current vision statement of PepsiCo.

First of all, I would like to recommend about the incomplete vision statement of PepsiCo. The vision of PepsiCo should include their company product, market, customer, technology focus, and their employees. So, employee and customer can easy to understand what kind of business PepsiCo is running and what purpose of PepsiCo is targeted.

The second shortcomings vision statement is not distinctive. From my opinion, the company vision should be different with other company’s vision. PepsiCo’s vision statement is too broad and it is easy same vision with others company. Therefore, PepsiCo should be more specific its vision statement and make the vision statement more memorable for people.

From my opinion, the current vision statement of PepsiCo is good but I would like to overcome the shortcomings appear in PepsiCo vision statement. So, new vision statement will be as below:

“PepsiCo’s is underscoring┬ácommitment a truthful desire for product quality and safety from materials, beverage mixing to bottling, and receive excellent services from our employee. Plus, responsibility is to continually improve all aspects of the world in which we operate and creating a better tomorrow than today.”

Our mission is maximum our shareholders wealth and focus on environmental stewardship and activities to benefit society by making PepsiCo a truly sustainable company.

Evaluation of mission statement

A mission statement is the current business activities or proposes “what we are and what we do”. From the mission statement of PepsiCo, I would like to use evaluation matrix to analysis and provides a new description to the PepsiCo. The components use to analysis include customers, products/services, markets, concern for survival, growth and profitability, technology, philosophy, self-concept, concern for public image and concern for employees.

The customer component is about the target customer of the company. From the current description of PepsiCo is does not mention about the customer. So, I suggest a new description that PepsiCo should concern, maintain loyalty and listen to customer in the mission statement.

Product and services component is about the firm’s major product and services provides to customer. From the mission statement, PepsiCo is offer convenient foods and beverages to the customer. For example product of PepsiCo offer is Quaker Oats, Cap’N Crunch cereal, Aunt Jemima syrup, and Tropicana juice. Although there is description in the current mission statement, but I would like to give my recommendation to make PepsiCo mission statement become better by develop a new product line. For example, PepsiCo can develop a new product line Pepsi Green mix with herb and position PepsiCo is an environment friendly company.

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Market component is about geographically and the places the firm compete. From the current description of PepsiCo is wanted to be the world’s premier consumer Products Company and serve in globally. For the new description, I would suggest PepsiCo increase more vending machine at bus station, train station, or cinema to make customer able to purchase at anywhere and anytime.

Concern for survival, growth, and profitability component is about is the firm financial soundness and committed to growth. From the current description of PepsiCo is produce financial rewards to investors as we provide opportunities for growth. For new description, PepsiCo is need for knowledge, producing and distributing valuable information in a way that benefits the customer and employee to serve the global market.

Technology component is about the firm technologically current. From the current description of PepsiCo is does not mention about the technology. Therefore, for the new description PepsiCo should spend money to do more research and development and using machines to reduce the production cost and time.

Philosophy component is about the beliefs, basic, aspirations, values, and ethical priorities of the firm. From the current description of PepsiCo is striving for honesty, fairness and integrity. For the new description, PepsiCo can share and caring where the people give their time, knowledge, and experience. Besides that, it also empowered people which mean that having a freedom to think in ways and get the job done, while following to processes that ensure management and being mindful of company needs.

Self-concept component is about the firm’s major competitive advantages or distinctive competence. From the current description of PepsiCo is does not mention about the self-concept. However, I would like to recommend PepsiCo to create a competitive advantage strategic. For example, Pepsi can use marketing mix such as product, price, packaging, and distribution to differentiate itself with other company product. And also can excellent customer services to the customer such as delivery product on time.

Concern for public image component is about the firm responsive to social, community, and environmental concerns. From the current description of PepsiCo is not appearing in the mission statement. Therefore, the new description for PepsiCo should contribute to the economic strength of society and responsibility of CSR. For example, PepsiCo is fully committed to protecting the earth’s natural resources through innovation and the efficient use of land, water, energy and packaging in the operations.

Concern for employee component is about the employee is valuable asset of the firm. From the current description of PepsiCo is enrichment to the employees, but I would like to enhance it to become better by provides reward and training to the employee. Once the reward system is set up, the employee is put more effect to doing their job and send employee to training it provides an opportunities for growth of business.

Following new description, I would like to modifications to the current mission statement to be a new mission statement as below:

“Our mission is to be the world’s leading consumer Products Company and selling beverages and foods in anytime and anywhere. We serve with high innovation technology to produce new food according customer needs and sending staffs to training for provides high quality of services to sustain customer loyalty. Also, we are responsibilities in CSR, empowered people, and opportunities for growth to maximize shareholder wealth.


As a business analyst of PepsiCo, I had analysed the vision statement and mission statement of PepsiCo by different component and evaluate matrix. Hence, I had recommended modifications and enhancement to the current vision statement and mission statement. With the new vision statement and new mission statement that has been enchanted will easier to understand and memorable by people. Lastly, by develop a new vision and mission statement, PepsiCo can create a better future and one more step forward be a truly sustainable company.


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