PepsiCo’s Turning Point: Establishing a Role in a Sustainable Society
(14 pages of text)
Case (Pub Mat)
In early 2011, PepsiCo, one of the world’s largest food and beverage companies, is receiving immense criticism for its role in social and ecological issues associated with the food system. Major health problems including obesity, heart disease and diabetes, not to mention environmental issues such as excessive packaging and waste, have encouraged PepsiCo’s chief executive officer (CEO) to rethink the company’s strategy. The CEO feels that PepsiCo has a responsibility to develop solutions to key global challenges like obesity. Doing so would require an extensive consideration of PepsiCo’s positioning in the marketplace in light of the many products it provides that currently contradict this very objective.
The case chronicles the overarching incompatibility of the interests of the food and beverage industry and those of society. Written for courses in business strategy, business and society, and marketing, the case describes the motivations of companies such as PepsiCo to overcome the underlying growth constraints of the food industry, the result of which has precipitated an onslaught of social and ecological issues seen in today’s society. The case pushes students to devise strategic alternatives for PepsiCo that vary based on the degree to which finding solutions to social and ecological issues becomes central to PepsiCo’s core strategy.
Global, Large, 2010
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