A Mission and Vision Statement Analysis of Pepsi
The purpose for which businesses exist is more than just to sell their products and earn profits. They are also here to make a positive contribution to the society and help it grow. Most of the big brands have elaborate mission and vision statements that expand on these parts. These statements are important, and even important is their alignment with strategy. They are like yardsticks to measure the company’s decisions and performance and if the company will be able to reach where it had started for. Without a vision of the future it would be impossible for business brands to know if they are on the right course. Pepsi is a global brand operating in the food and beverages industry. It is known for its large product portfolio, its brand image and for its global presence. The brand’s target market is mainly made up of the young generation. However, Pepsi’s focus is also on accountability in business. As per its mission and vision statements there is a purpose behind its performance.
As one of the largest food and beverage companies in the world, our mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.
The main focus of Pepsi’s mission statement are its product, its business position, its market size and its social responsibility. First it spells out its position as one of the largest food and beverages companies in the world. Apart from that it clarifies the types of products it makes and how affordable and convenient they are for the customers. However, the mission statement does not get very clear about its target market or customer segment except that it is serving the global market. In the last part of its mission statement it does speak about its corporate responsibility and how it is spending in people and communities to achieve long term sustainable growth. From products, to a global market and leadership position, nearly every important aspect of the business and its purpose is clear through the mission statement. A good mission statement must be clear and specific so as to assist the managers with decision making and resource allocation. the focus of Pepsi in this regard is to create a positive brand image that connects with the people and on long term sustainable growth.
At PepsiCo, we aim to deliver top-tier financial performance over the long term by integrating sustainability into our business strategy, leaving a positive imprint on society and the environment. We call this Performance with Purpose. It starts with what we make— a wide range of foods and beverages from the indulgent to the more nutritious; extends to how we make our products— conserving precious natural resources and fostering environmental responsibility in and beyond our operations; and considers those who make them— striving to support communities where we work and the careers of generations of talented PepsiCo employees.
There are four important points of focus in Pepsi’s vision statement:
– Business performance and strategy
– Product quality
– Environment and social responsibility
Right at the outset Pepsi makes it clear that what it expects to do over the long term. It aims to deliver top tier financial performance over the long term and it is going to make that possible through the integration of sustainability into business strategy. Its strategy is that of performance with purpose which it believes in making possible by leaving a positive imprint on both the society and the environment. Next, is product quality and Pepsi’s vision of performance with purpose starts with making of a wide range of products which are meant to indulge the taste and provide nutrition. Environmental protection is another key focus dealt with in the vision statement. Not just in its operations but also beyond them, Pepsi focuses on the conservation of the environment. Apart from it, Pepsi’s support is meant for both the communities where it operates and those employees who are working so the brand can achieve its objectives. Pepsi’s vision is a detailed and good one that explains everything from its long term business strategy and objectives to its environment and HR strategy. Pepsi is far more clear about its long term strategy and social responsibility in its vision statement. Another important thing is the feasibility. Its vision statement is achievable. Again the focus is on great financial performance while focusing on creating a good brand image and acting in an environmentally responsible manner. the vision is like a strategic plan for future where it also leaves scope for amendment given Pepsi may need to reset its course in future. The good thing is that in its vision statement Pepsi clearly explains how it is working to achieve its future from environment to profits.
To successfully achieve its mission and advance towards its vision, Pepsi has six guiding principles that guide its style of doing business. Guiding principles are like core values that guide behavior inside the organization. They are discussed in detail below:
Care for our customers, our consumers and the world we live in: Care for the customers and the world is important for Pepsi since the brand’s success lies in their happiness.
Sell only products we can be proud of: From sourcing raw materials to selling the final product, it is all about quality at Pepsi. It would not invest in a single product, it thinks it will not be very proud of.
Speak with truth and candor: Ethics is an important concern in business. Pepsi believes in being candid in all sorts of communication whether internal or external. After all long lasting businesses are not based on lies.
Win with diversity and inclusion: Another key principle at Pepsi that has helped it brings new traits, ideas and perspectives together to foster innovation. Diversity means diverse ways of thinking and inclusion means the participation of all without any prejudice or discrimination.
Balance short-term and long-term: Pepsi does not lose focus of either its short or long term concerns in business. It always tries to strike a balance between the two. Keeping both in sight ensures that it can achieve sustainable growth and that its ideas and solutions are relevant in both present and future.
Respect others and succeed together: Trust and respect are essential for achievement, inside as well as outside the company. Moreover, effective team work requires mutual trust and respect.
These were the six guiding principles guiding every day behavior and decision making at Pepsi. Any company must have a strategic plan for the future to be successful. Both the mission and vision are an important part of strategic planning. Simultaneously, the core principles keep the company together which is also essential to accomplish the objectives. These things also bear a deep relationship with the organizational culture.
Source: https://www.pepsico.com/Purpose Suggested Reading: Pepsi Value Chain Analysis