Pepsi Company`s Business Report.

PepsiCompany’s Business Report.



Tableof contents

Executive summary 3

Introduction 3

Body 4

Finding 1 4

Finding 2. 6

Finding 3. 7

Conclusion 9

References 10


Competitionis one of the most feared phenomenons by every company in the market.In order for one to grab the greatest market share, it should haveits own unique way of operation. Discussed is a report on the PepsiCompany on the measures it should take to increase the quality of itsproduct. There are various companies such as Coca-Cola and the watercompanies that beat Pepsi in the market industry.


Abusiness plan is a document spelling out the goals and objectives ofa business. It gives outline of the business to any individual or agroup of persons who want to start a business opportunity.

Competitionis defined to as an occurrence where two companies or more producessimilar products targeting the same customers (MacKay, 2005).Competition benefits customers in various ways. First and foremost,the customer will have a variety of choices as to which company theywill purchase their products. Other than several choices, Mackay(2005) adds that,customers will also benefit from low prices as compared to a monopolymarket where there is only one producer who is in charge of pricescontrol and many buyers. In a competitive market, the prices ofcommodities are determined by the market environment and not anindividual. An individual may wish to increase his/her price but thiswill lead to a fall of demand since high prices repels customers fora normal good. Competition also leads to quality products. This is sobecause, different companies will make sure they produce qualityproducts depending on the customers’ preferences so as to win thegreatest market share. Other than winning the greatest market share,every company’s main goals are to maximize its profits, minimizethe cost of production and also to maximize the value of thecompany’s resources. Many companies are faced with the issue of lowquality of outputs which in turn makes the company beaten in themarket by other companies that produce the same product. Companiesdiffer in profit margins due to different ways and techniques inproduction. The main objectives of this business plan is tostrategically investigate the ways in which Pepsi Company that isinvolved in production of drinks can improve its production processesin order to beat the competitive firms such as Coca-Cola that isinvolved in production of similar drinks.


Qualityimprovement is something that any organization in a competitivemarket aims at and in most cases becomes difficult for most companiesto attain. However issue brought about by efficiency in products andalso the quality of the products produced emerge due to missing ofimportant documents such as accounting records or in other cases whencustomers complain that the product does not meet their needs (Lipsey&amp Lipsey, 1990).However, the problem of product quality improvement can be cubedaccording to the finding discussed below.


Oneof the most useful tools used in improving the quality of a productis the ISO9000 tool. ISO9000 is a quality improvement measure thatcontains guidelines believed to be useful in increasing theefficiency of the business and also meeting the customers’ needs.The main objectives of ISO9000 are to minimize any unnecessary costsincurred in the production process, improve the output’s quality,grab the largest market share and also maximize profit margins.ISO9000 is applicable to any form of business sector. It does notfavor on any specific sector. ISO9000 is important. A company thatadopts the ISO9000 is able to identify the roots of any problems andalso come up with solutions to these problems.

Thereare however several basic principles of ISO9000 that help inimprovement of product’s quality and maximizing profits. First andforemost is the Customer focus. Every company is supposed to put allits concerns to the tastes and preferences of the customer. When thecompany realizes the customers’ taste, it will be able to produceproducts that meet the customer’s need. Products that favor thecustomers will enable the company retain its loyal customers and alsoattract new customers and from the business knowledge loyal customersin a business is the business itself. The company will thereforeattain it greatest objective of maximizing profit margins.

Thesecond principle is the good leadership aspect. Organizations shouldensure that it is equipped with a team of good leaders. Goodleadership enhances proper communication and everyone is motivated towork. When every worker is motivated, work is done more efficient andthus quality product improvement (Lipsey&amp Lipsey, 1990).

Thirdlyis the involvement of people. Companies should ensure that everyworker is involved in every operation. Involvement of workers willpave ways for a good working environment where workers will be ableto exchange different production ideas that will in turn act as anadvantage to the company in improving the product quality. Continualimprovement is another important principle in business operation.When a company is dedicated to continual improvement, the companywill gain advantage from its competitors and thus increasing theprofit margins thus leading to a faster and a more efficientdevelopment (Chamberlin,1962).

Lastly,supplier relationships are another important principle in anybusiness operation. When a company establishes a good relation withthe suppliers, in case an urgent need arises and raw products arerequired urgently, the supplier will immediately deliver the urgentproduct due to the good relationship established earlier on (Lipsey&amp Lipsey, 1990).


Theother most important quality improvement process is the eightdimension of quality. The concept of eight dimensions of quality wasfirst defined by a scholar David Garvin (Narayana,Appannaiah &amp Sathyaprasad, 2010).The dimensions of quality were stated as performance, features,reliability, conformance, durability, serviceability, aesthetics andperceived quality. To start with performance refers to thecharacteristics of the product’s primary operation.

Asnoted by Sen(2008), companiescan be ranked depending on the quality of its operation. A companythat employs high level of technology in its performance can beranked as the best company with the best products. Feature is thesecond dimension in product improvement. Features refer to any extracharacteristic on a product to suit the user. Extra characteristicssuch as provision of straws on bottled drinks will attract morecustomers. Reliability, the third dimension in product improvementrefers to the probability through which the product will reach thetargeted population on time. It is important for the every company toensure that the products are delivered on time to its customers. Theconformance dimension indicates to what extend through which theproduct design and operational features meet the required standards.Durability measures the lifespan of a product. Companies shouldmanufacture durable products that are friendly to the customers.Serviceability implies the ease of customers to obtain repair partsfor the products. The company should ensure that there are extrabottles to ease the customers in purchasing of drinks. The dimensionof aesthetic plays a vital role in identifying the product’sidentity. Companies should manufacture products that are easilyidentifiable in cases of expiry date. The last management quality isthe perceived quality. Customers do not always have the clearinformation of the product type. The company should therefore makesure that its products are easily identifiable and differentiated.The company can ensure that its customers heave clear informationabout the product through advertisement.


Theother most important quality improvement tool is the leanmanufacturing. This refers to how waste products in any company aredisposed. The lean manufacturing techniques were first introduced bythe Toyota Company. Companies should have proper ways of disposingtheir waste products so as to create a friendly working environment.Companies should also have appropriate ways of recycling the wasteproducts. Waste products can be recycled and thus reducing thecompany’s production cost thus maximizing profit margins (Pinson,2004).

Inorder for the company to maximize its profits, it has to apply theabove processes (Kuiper,2007).The company should involve every member in the operation processes soas to facilitate the exchange of ideas. It will in turn increase thecompany’s output. In other instances, the company should alsodevelop good relation with its suppliers in order to facilitate thesmooth flow of the operation process. The company should also ensurethat the products reach the customers in time of their need. Forinstance, during hot seasons, the company should make sure the drinksare available to the customers before the cold season begins. Thefirm should also have equipped team leaders who are honest and humblein their work. Good leaders will create a good environment forworking and workers will work whole heartedly thus quality inproduction. Pepsi Company should also make sure that the informationabout their products reaches its customers. The company should usethe advertisement technique in marketing its products. The companyshould also set up more firms worldwide. This will enable the companyexpand globally (Kuiper,2007).When a firm expands globally, it will be able to beat its rivalcompanies and thus acquiring the greatest market share. When morefirms are set in different countries and in different location, thiswill enable the drink to reach the customers on time of their needs.The setting up of firms will also reduce the company’s cost oftransporting the already manufactured and packed drink from theparent country to other countries worldwide. The general cost ofproduction will generally be scaled down and thus an expansion in theprofit margins (Lipsey&amp Lipsey, 1990).

Alot has been discussed on what the company should implement. Onsimilar lines, there are also other practices during operation thatshould be avoided. Franchising, the use of other Company’s name inthe marketing of the other companies’ products, should be practicedand also avoided at some points. The Company should not allow itsrival Companies to use its name in their marketing processes. Thiswill bring about biasness since the rival company will be consideringits self interest and in the process, it shall be tarnishing theparent company’s name so as to attract more customers from theparent company and grabbing the greatest market share. The companyshould however use other big companies’ names such as the ToyotaCompany or any other widely known company in marketing for theirproducts. The Company should in all ways possible avoid any form ofpartnership within any rival Company (Sen,2008).

Thecompany should avoid employing too many workers in the firm andinstead adopt modern technology such as the use of computers whilemanipulating costs and also the use of CCTV cameras in productionareas. When the use of computers is implemented, many workers will besubstituted thus reducing the production cost since the cost used inpaying their salaries will not be used again but instead expand thebusiness. The adoption of CCTV cameras will replace many guards whowould have been employed in guarding the firm. This again will inturn minimize the cost of production and expand the profit margins inthe same ways as adopting the use of computers (Sandhusen,2000).The company should also avoid high prices on the product. When pricesare higher that the competitor’s price, people will prefer theother product since according to Kaynes law of demand, an increase inprice leads to a decrease in demand and when prices are low demandincreases. The company should therefore maintain a standard price soas to retain the loyal customers and attract new customers. Onsimilar lines, the company should not charge low prices to an extendof incurring losses (Kuiper,2007).


Insummary, the company should be able to identify its stronghold. Inthe above case, advertisement plays the greater portion in marketing.The company should therefore implement efficient advertisingchannels, also including verbal advertisement. In so doing, thecompany will start grabbing the greatest market share thus maximizingits profit. Proper disposal of a company’s waste product willenable a company have a good relationship with the mother country.The benefits of maintaining a clean environment is that there will beno any conflict between the company and the government healthofficers thus a clean working environment. The company should alsoadd additional features to its product such as provision of drinkingstraws. This feature will enable customers purchase more.


Chamberlin,E. (1962). Thetheory of monopolistic competition.Cambridge: Harvard University Press.

Kuiper,S. (2007). Contemporarybusiness report writing.Mason, OH: Thomson South-Western.

Lipsey,R., &amp Lipsey, R. (1990). Microeconomics.New York: Harper &amp Row.

Mackay,A. (2005). Thepractice of advertising.Oxford: Elsevier Butterworth-Heinemann.

NarayanaReddy, P., Appannaiah, H., &amp Sathyaprasad, B. (2010). Businessmanagement.Mumbai [India]: Himalaya Pub. House.

Pinson,L. (2004). Anatomyof a Business Plan: A Step-by-Step Guide to Building a Business andSecuring Your Company’s Future(6th Edition). Dearborn Trade: Chicago, USA.

Sandhusen,R. (2000). Marketing.Hauppauge, N.Y.: Barron`s.

Sen,M. (2008). Businessmanagement.Jaipur, India: Oxford Book Co.