12 May HOW EFFECTIVE DO YOU THINK PEPSICO HAS BEEN IN RESPONDING TO STAKEHOLDER CONCERNS ABOUT NUTRITION AND SUSTAINABILITY?
Answer the following questions
in a report format:
2. How effective do you think PepsiCo has been in responding
to stakeholder concerns about nutrition and sustainability?
3. While PepsiCo was trying to become a responsible and
ethical company, how did the AMP Up Before You Score
mobile app get distributed without proper oversight from
those who are concerned about appropriate conduct and the
reputation of the company?
Daniels Fund Ethics Initiative
University of New Mexico
http://danielsethics.mgt.unm.edu
This material was developed by Kendra Berch, Kimberly Montoya, and Jennifer Sawayda under the direction of O.C. Ferrell and Linda Ferrell.
It is provided for the Daniels Fund Ethics Initiative at the University of New Mexico and is intended for classroom discussion rather than to
illustrate effective or ineffective handling of administrative, ethical, or legal decisions by management. Users of this material are prohibited
from claiming this material as their own, emailing it to others, or placing it on the Internet. Please call O.C. Ferrell at 505-277-3468 for more
information. (2010)
PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey PepsiCo’s Journey TowardTowardTowardTowardToward an Ethical an Ethical an Ethical an Ethical an Ethical an Ethical an Ethical an Ethical an Ethical an Ethical an Ethical and Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Cultureand Socially Responsible Culture COMPANY OVERVIEW
PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells eighteen brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products in over 200 countries. It currently holds 36 percent of the total snack food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The company’s headquarters are in New York and employs over 200,000 people. In 2006, Michael D. White became the CEO of PepsiCo International, and in 2007 Indra K. Nooyi became the CEO of PepsiCo. PepsiCo has received many awards and recognitions over the years, including being ranked in the top 25 of the best global brands, ranking number four overall by Diversity Inc, and earning the Green Award by the Environmental Protection Agency. COMPANY AND MARKETING HISTORY
The Pepsi recipe was developed by pharmacist Caleb Bradham in the 1890s. Originally marketed under the unassuming name “Brad’s Drink,” Bradham’s creation was renamed Pepsi-Cola in 1898 due to the pepsin and kola nut ingredients used. Awareness of Bradham’s new creation spread quickly, and in 1902 he decided to create the Pepsi-Cola Company so people everywhere could enjoy the drink. In 1903 the patent became official, and by 1910 Pepsi-Cola had franchises in 24 states and sold over 100,000 gallons of the syrup annually. However, the Pepsi brand would encounter several rocky situations before becoming the success that it is today. World War I proved to be an especially turbulent time for Pepsi-Cola. Severe fluctuations in sugar prices caused the company to lose money, and in 1923 Bradham sold the trademark to Craven’s Holding Corp., who shortly after sold it to a New York stockbroker named Roy C. Megargel. Megargel fought to revitalize the company but failed. In 1931 the Pepsi-Cola Company underwent its second bankruptcy. Candy manufacturer Charles Guth, president of Loft Inc., saw Pepsi-Cola as a great investment and decided to purchase the company. Within two years the company was earning over a million dollars and was on its way to making history.
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