Sustainable operations and supply chain management

Running Head: Sustainability
Sustainable operations and supply chain management

Introduction
PepsiCo, Inc. is an American multinational corporation engaged in production and distribution of
beverages and fast food items. Company was formed in 1965 with the merger with Pepsi-Cola
Company and Frito-Lay Inc. Since then, PepsiCo is expanding its business and market share
across the globe and Tropicana is one of the biggest acquisitions made by company in 1998 and
Quaker Oats in 2001. It has been observed that company’s every brand is contributing to enhance
overall revenues of the organization. Approximately $1 billion revenue is contributed by every
brand of PepsiCo since 2012. Company is operating in various parts of the globe along with
approximately 3 lacs employees in all global locations (PepsiCo, 2018).
Nestle is a Swiss transnational beverage and food manufacturing and distributing company.
Since 2014, company is known as the largest company in terms of revenues across the globe. It
is headquartered in Vevey, Vaud, Switzerland. Company has been ranked on 64th and on 33rd
position by Fortune Global 500 in 2017 and by Forbes Global 2000 list of largest public
enterprises in 2016 apiece. Majorly Nestle deals in baby products, tea & coffee, bottled water,
medical food, confectionary ice cream, snacks, etc. Nestle was formed in 1905 with the merger
of Anglo-Swiss Milk Company and Farine Lactee Henri Nestle (López & Monfort, 2017).
With regards to both these companies, their overall sustainable strategies will be discussed under
this report. Corporate sustainability is an approach which leads to showcase long-term survival
of the organization to its stakeholders with the help of an effective business strategy. The
business strategy implemented within the workplace should consider every aspect in which
business operates such as economic, social, environmental, cultural, and in ethical spheres.
Adaptation of sustainable strategies is an important concept and it should be done with the view
to enhance organizational reliability amongst its target and potential demographics. Apart from
this, sustainable strategies are also effective sources for long term survival in the competitive and
dynamic business environment.

Data Analysis
Sustainable Strategies of PepsiCo
PepsiCo believes in strong sustainability governance which is the foundation for delivering on
our Performance with Purpose (PwP) vision in order to provide long term top-tier financial
performance by assimilating the sustainability into business strategies. Apart from this, PepsiCo
has accepted sustainability as a part of business practices and in this regard, company also value
its shareholders and other stakeholders (PepsiCo, 2018). In order to enhance the effectiveness of
their sustainability strategies, PepsiCo has taken an initiative to make a healthier environment
around the organization and for this; they are working for creating healthier future for people and
for the whole planet. Their Performance with Purpose 2025 agenda is designed to deliver needed
change across the company, industry, value chain and the world (Cohen & Muñoz, 2017).
(Source: CDP Report, 2017).
PepsiCo cultivates sustainability from its employee culture. PepsiCo is using its human resource
department to integrate the concept of sustainability in firm’s culture. In order to integrate the
concept of sustainability in organization, management hires employees, train them and by
providing employee welfare packages to them. PepsiCo hire only educated and talented
employees so that they could be trained with sustainable business practices (Sehrawat, 2017).
With the help of this, a sense of belonging develops which further leads to an employee welfare
package. As a result, company’s employees are always motivated which generate positive results
for the organization like producing high qualitative products. Along with these practices,

PepsiCo is also engaged in ecological manufacturing practices such as diversion of waste from
landfills, organic packaging and reduction in greenhouse gas (GHG) (Appendix 1).
(Source: CDP Water Report, 2017).
(Source: CDP Water Report, 2017).
These figures describes that PepsiCo’s each and every manufacturing site is being monitored as
well as measured whether it is a outsourced firm or it is a part of internal manufacturing unit.
Management of organization tracks on water withdrawals on monthly basis. This is done to
enhance the opportunities of sustainable development for organization along with coping up with
the sustainability metrics platform. PepsiCo’s internal self-assessment program to measure water,
sanitation and hygiene has been implemented so as to enhance the sustainability in the
competitive business environment.
Sustainable strategies of Nestle
Main motive of Nestle is to provide quality food products to the target and potential customers
along with sustainable development. In terms of Nestle, definition of sustainable development is
that it is a process through which world’s access could be increased towards higher quality food