1. ECONOMIC ENVIRONMENT OF BUSINESSPROJECTMMS-I (Sem- 2)CHANAKYA BATCH2008-09DATE- 19/03/2009 SUBMITTED TO: Ms. GITANJALI KAPOOR

3. GROUP MEMBERS . IZHAR MUSHRIF C-15 ANU PILLAI C-28 ANANDITA SINGH C-34 SOURABH SURYAVANSHI C-35 AMIT JAIN C- 44 Roll Nos Names

6. Merger of that two companies in 1890.

7. Herman Lay - chairman of the board of directors of the new company.

8. Donald M. Kendall -president and chief executive officer.

12. COLDRINKS COLDRINKS JUCE

13. SNACKS

14. HUMAN RESOURCE

17. Fair wages, benefits and other conditions of employment.

19. Comply with all applicable laws, regulations, and other employment standards.Speak Up To promote high ethical standards and open communication across a global organization. HIV/AIDS Committed to make a significant contribution to the fight against this, and to assist employees and family members affected by it.

20. Employee Benefit ProgramsComprehensive benefits packages - designed to address the health care and financial needs of employees, both now and into retirement. Awards

22. 360-degree feedback process

23. In 2007, introduced a concept called "One Simple Thing,“- strives to help associates better balance work and home.

26. Gives consumers choices across the spectrum.

27. Playing a responsible role in health and wellness by encouraging people to adopt healthy, active lifestyles.

28. World-class scientists

29. Continuously Introduces new food and beverage products that offer nutrition benefits;

31. Suppliers Diversity and inclusion. Developing partnerships with minority-owned and women-owned suppliers to build the world-class supplier. Creates mutually beneficial relationships that expand PepsiCo's sphere of activity. Builds community infrastructure by providing employment, training, role models, buying from other minority and women-owned business and supporting community organizations. Give opportunities to qualified minority and women suppliers a chance to succeed.

32. Competitors The competition is very high in this industry- Currently ranks 2nd in branded food and beverage manufacturers in the world, by net sales, trailing only Nestleviii. Ranks 2nd in carbonated beverages, trailing only Coca-Colaviii. In total beverage sales in the US they rank 1st with about 25% of the market share.

33. Market Share in U.S.

34. MACRO - ECONOMICS Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national or regional economy as a whole

35. The Company’s Macro - economics

36. PepsiCo Environmental Policy “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate –environment, social and economic – creating a better tomorrow than today.”

38. Associates

39. Retailers

40. Suppliers

41. Governments

43. TECHNOLOGICAL ENVIRONMENT PepsiCo has leveraged its knowledge in contract farming. Partnered with the Government of Punjab to help farmers for citrus farming. Assured availability of high end technology Established collaborations for development of agriculture.

44. LEGAL AND TAX Meet the local Indian standards (Health Ministry Standards for carbonated beverages Prevention of Food Adulteration Act (PFA) directive on the use of water in the preparation of soft drinks. They also comply with Bureau of Indian Standards (BIS) for packaged drinking water. The ‘One Quality Worldwide’ assurance seal appears on the entire range of PepsiCo’s beverages. Dispute in name to ownership of pepsi brand name.

46. OPERATIONAL OVERVIEW

48. Contribute to the country, consumers, farmers and people.

49. Investment - U.S.$1 billion (in India).

50. Employment - 150,000 people including suppliers and distributors.

51. 43 bottling plants in India. 15 – company owned & 28 franchise owned.

52. BOTTLING PLANT

53. Global operations Frito – Lays america Frito – Lays international Pepsi – Cola North America Pepsi - Beverages Gatarade – Tropicana North America Quaker foods North America

54. DISTRIBUTION Aim of Pepsico All products in its portfolio within a distance easily reachable by Distribution Methods Direct Store Delivery (DSD). Broker Warehouse System. Vending & food service system & pre- sell method.

55. DISTRIBUTION CHANNEL Supermarkets / retail stores. Fountain / restaurants. Convenience stores. Vending machines & other distributing beverages & snack foods.

56. MARKETING Blue and red globe trademark Pepsi Challenge - Pepsi-Cola Vs Coca-Cola. In 2007, PepsiCo redesigned their cans for the fourteenth time. More than thirty different backgrounds on each can, introducing a new background every three weeks. 2008, Pepsi overhauled their entire brand.

59. Corporate Social Responsibility

60. Our Environmental Policy Encourage conservation of natural resources, recycling, source reduction and pollution control. Establish metrics to monitor environmental performance. Implement environmental management systems to identify and manage environmental risks, obligations and opportunities. Work with licensed bottlers, suppliers and customers to reduce the environmental impacts of the products. Apply sound environmental management practices where the judgment, existing legal requirements are insufficient for the operations.

61. Water Conserving Water in the Operations. Reducing Water Use in Agriculture. Leaving a Positive Footprint on Society. China Women's Development Foundation. The Earth Institute. WaterPartners. Safe Water Network.

62. Energy Reducing the Energy Use. Harnessing Renewable Energy. Partnering for Change.

63. Packaging and Solid Waste Follow five principles of sustainable packaging design: Reduce Reuse Recycle Remove Renew Using Less Material in Packaging. Reducing and Recycling Waste. Solid Waste.

65. Code of Conduct

66. Respect for Employees. Global Relations. Health and Safety. Business Gifts and Entertainment. Environment. Political and Community Activities. Confidential Information and Insider Trading. Accounts and Record-Keeping. Protection and Proper Use of Company Assets.

67. Future Prospects

68. Introduction of Pepsi Natural. Introduction of Pepsi Throwback and Mountain Dew Throwback. Set corporation-wide goals to reduce water and energy consumption by 20% and fuel consumption by 25% by the year 2015. Frito-Lay North America will add more than 1,200 fuel efficient Sprinter vehicles to its nationwide fleet.

69. conclusion