Enterprise and Entrepreneurship Report: PepsiCo Business Plan Analysis

This report analyzes PepsiCo's business plan, focusing on its new product "EVOLVE" and its position in the beverage industry. It delves into the company's mission, vision, and SMART objectives, examining its business model, management team's expertise, and the role of entrepreneurship within the enterprise. The report provides a detailed market and competitive industry analysis using Porter's Five Forces, and discusses the company's marketing, sales, and financial strategies. It also covers the legal form and ownership structure of PepsiCo. The report aims to assess PepsiCo's ability to gain a strong market position, considering its major competitor, Coca-Cola, and the dynamic nature of the business environment. The report concludes with a discussion of the company's future prospects and potential challenges.

Enterprise and
Entrepreneurship

Table of Content.
EXECUTIVE SUMMARY.............................................................................................................1
MAIN BODY...................................................................................................................................1
The New Business Concept/Business Model..............................................................................1
Management Team’s Entrepreneurial Expertise. ........................................................................3
Market and Competitive Industry Analyses................................................................................6
Marketing Strategy for the new business venture........................................................................7
Business Sales and Operations Strategy......................................................................................8
Business Financial Strategy and Risks........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
Entrepreneurship is the activity of establishing a business entity and leading it to a
successful one by fulling the needs of the market and creating a new level of satisfaction value
among the consumers. Enterprise is the business entity that is being established and operated in
the process of entrepreneurship. Whereas Entrepreneur is the person engaged in the
entrepreneurial process and responsible for all the operations that happen in the enterprise and its
results. A business enterprise needs a business plan for its daily basis maintenance and
achievement of objectives. It is a set of plans with including all the basic information of the
company such as – its goals, availability of resources and marketing practises. The PepsiCo
company is founded by Caleb Bradham and the headquarter is in North Carolina, United States.
The business plan for the report is for a company that is being established to deal in the
beverage industry whose main products are cold drinks. The target market of the company are
not specific but generally the youth or young people consume the related drinks and are in
budget so every income class the lower, middle and higher one are targeted by the company.
There are many other companies in the market that deal in the same industry and some of the
main competitors for the company is Coca cola. The problem is how the company will be able to
gain a strong position in the market where there are already many companies dealing in the
industry.
MAIN BODY
The New Business Concept/Business Model
The PepsiCo company has introduced the new commodity “EVOLVE” which is one of
the nutritious drink and is ready to drink product. This particular drink is available in three
different flavours which is Hazelnut, vanilla and caramel. The drink helps in improving the
immune system of the individual as it is one of the energy drink and conatins zinc as well as
vitamin C which is beneficial to the human body.
The vision of the organisation is to provide the customer with unique products and work
in favour of environment as this will lead the company to gain more profitability. It will also help
the company to gain competitive advantage in the competitive market. The organisation wants to
achieve the success for the long term and wants to leave a positive impact in the economy.
1

The mission of the organisation is to provide tasty, affordable and quality food and
beverages in an effort to give the healthy breakfast and evening snacks to the people. The
PepsiCo company is committed to invest for the customers, organisation and the community
where they run their business enterprise with the purpose to build good brand image so that they
can survive for the long term.
In a light to fill the gap of market, the firm has developed the plant which is based on
protein drink for the consumers. This commodity assists the individual to have strong immune
systems. This product is developed by the organisation in order to give something unique and
different products to the consumer which also increases the energy to stay active. The SMART
model helps the organisation to show the objectives of business which is mentioned below:
SMART objectives
 Specific: The PepsiCo company give consumer with delicious food with some beverages
which are complementary. This leads the organisation to expand their business and
therefore, company has also introduced the new commodity which assists the customers
to enhance their immune system.
 Measurable: The company has predicted to obtain the objective of firm by 2030.
 Achievable: The company can wish to have rise in profit by 35% due to new product as
they have also established a new protein based plant.
 Realistic: This product consits of vitamins and other healthy ingredients which are good
for the customers and it is very popular for the muscle milk brand.
 Timely: By the 2025 the firm's product will have development and they can also achieve
maximum profit by 35%. This can lead the company to accomplish the objective
successfully.
Business Model
The new product “EVOLVE” is established by the PepsiCo company. This respective
commodity can be utilised by any age group as this is one of the energy drink which assists
individual in enhacing the immune system. The organisation have good brand image in the
market but after launching this product it is leading in the market (Watts, 2018). Moreover, their
protein based healthy product will help them to gain success in the target marketplace. The
product possesses the vegan protein shake, product consists of eco-friendly packaging and the
green urban spaces. The sustainability is taken into the consideration by the organisation as it
2

supply eco-friendly packaging and protein shake attracts more number of consumer to buy as it
is one of the healthy drink.
Management Team’s Entrepreneurial Expertise.
The entrepreneur is an individual who is innovative and creative as well as they start up
their own business enetrprise with the purpose to increase the profit and develop a unique
product which help in filling the market gap (Kaplenko and et. Al, 2022). The entrepreneurs are
the independent and they have freedom and flexibility to take decision while working. When a
business enterprise is owned and formed by the entrepreneur it can referred as entrepreneurship.
Whereas the business enterprises are refered as a unit of the organisation or business organisation
where the operation of a business takes place. The entrepreneurship plays a vital role in various
types of business enterprise.
The various types of an enterprises are discussed below:
There are several form of business enterprises which exits in the marketplace. A major
difference between is their structure and their legal owners of every enterprise.
 Sole Proprietorship: This type of business have single owner who operates the activity
of the business enterprise (Wang and Luo, 2021). It is considered as small business and
the examples are- painters or hair stylist. In recent time period, the online business is also
included in these type of business as they are owned and managed by sibgle individual.
 Partnership: It refers to the group of individuals who share ownership, risk as well as
profit and the take part in decision making process. This also includes the partners who
bring their experience, knowledge and speciality in the business enterprise with the
purpose to extend the operation of business.
 Private Limited Company: These type of business concern have their own identity and
is legally incorporated (Johnson and et. Al, 2021). This enterprise have limited liability
and the shareholders are have legal right to choose and select the directors who can take
decisions of business and monitor the functions of the business. Moreover, the
administators have duty to check the daily workings.
 Public Limited Company: In this type of enterprise, companies shares are basically sold
out to the common individual. It is required for organisation as it have to follow up legal
criteria & regulations. With respect to the business, financial accounts, transparency of
accounts and other information are neccessary.
3

Background profile of top management
 Ramon Laguarta is a Chairman of BOD as well as he is the CEO at PepsiCo company.
Being a chairman, they lead the company towards the growth and development. They
give more empahsise on forming new mission and vision. They belong to the Barcelona
and have a degree of MBA as well as they have done Masters in international
Management from ESADE Business School from Spain and Thunderbird School of
Global Management.
 ROBERTO ACEVEDO is the executive vice president, chairman of BOD, officer of
chief corporate affair and Co-Founder of Pepsi. They have completed their graduation in
electrical engineering from the Brasilia university. With the help of their ability and
knowledge, the company got involved with the national and international government,
and many more public governing bodies which affects the company.
Role of an entrepreneurship in relation with enterprises
 Initiator: In the procedure of introducing the business enterprises the entrepreneurship
includes the process of initiating (Jungmann and et. Al, 2022). It is basically associated
with the procedure of devoping a business concern and to bring the creative as well as
innovative ideas.
 Risk Taker: In business organisation, entrepreneur are the one who takes biggest risk in
the process of entrepreneurship. They are the only people who makes investment in
resources, assets, machineries in order to carry out the activities which is planned and
they are also reponsible for the business failures.
 Forecasting: The procedure of entrepreneurship includes the forecasting of an
enterprises and the change which happens in the business environment can affcet the
business operation (Jena, 2020). The entrepreneurship process is facilitated by an
entrepreneur which assists in forecasting the changes and make the plan of business
accordingly.
 Allocator: An allocator is the one who gives resources in a business enterprise. The
resources helps the business to wokr more effectively and efficiently. Thus the
entrepreneurship process is also responsible for hiring productive staff with the purpose
to carry out the business operations effectively.
4

legal form of business and ownership structure.
The PepsiCo is an American multinational organisation which provide customers with
various types of beverages, snacks, and food. The company has changed its organisational
structure after the global expansion as it was following hierarchical organisational structure
(Zakharkina, Kuznetsova, 2019). The company’s organisational structure is its market division,
which is assosicated with two variable Business & Geography. The organisational structure of
companies is given below in regards with market division:
 Latin America Foods
 American Beverages
 Quaker Foods
 Frito-Lay
The another structure which company follows is Functional Corporate Groups/Offices. It
refers to the function of business. The company is operating its business at different job
locations. The main aim is to assure the quickly formation of plan of action and policies. The
functions of corporate groups are;
 Human Resource
 Finance
 Government Affairs
 operation at global pace
 Communication
 Research and Development
The finally Hierarchy which chosen company adopts of organisational structure is global
hierarchy. This structure permit the organisation to communication, monitoring and control
operation from the top to down path (Low and Ng, 2018). It assists in minimising the deviations
for the plan of action and policies. With respect to this, legally the firm follows the tall hierarchy
structure that includes the global groups and market division.
5

Market and Competitive Industry Analyses
porter's five forces
The business environment is becoming so dynamic and innovative that there are various
external and internal factors which affects the company's performance. The impact of the
external factor is discussed through five forces. The porters five forces of PepsiCo are mentioned
below:
 Competitive rivalry: The coco cola is one of the biggest competitor of the PepsiCo.
Those firms who are in same industry provide innovative products which has strong
impact. The competition with rival company is more because the customers can easily
switch the products (Andreeva and et. Al, 2019). Thus, the firm should provide unique
product with the purpose to lead in market.
 Bargaining power of buyers: Pepsi Co company gives more preference to the
consumers. It is discovered that the user can change their preference from one product to
other due to low cost of substitute good. So, the customers has the ability to determine the
6

success of Pepsi company. In order to create high revenue, the organization should
increase the satisfaction level of a user (Rosati and et. Al, 2019).
 Bargaining power of suppliers: The administration has retained the healthy and
profitable relation with the suppliers. The firm get the raw material due to which the
bargaining power of supplier is low. Due to the low combination it have the limited
control of suppliers.
 Threat of substitutes: There is high possibility of accessibility of substitute good of the
Pepsi company. The consumer of Pepsi company can easily shift to other substitute. But
due to production of energy drink also, it hold the consumers (Parra -López and
Martínez- González, 2022). The external component make the strong threat of substitute
which is faced by the organization.
 Threat of new entrants: The organization remains strong as there is a few chances of
new entrants. The development cost of brand trim down the risk of new entrants which is
directly competing against the Pepsi Co. Thus it have moderate force of new entrant on
the Pepsi Co company.
STP (segmentation, targeting and positioning)
The organisation adopts multi segment type of positioning and accordingly they target the
customer at a same time with different products. In an effort to evaluate the market STP model is
used.
 Segmentation: This aspects of marketing model which is used to develop the several
customer segments based on the criteria. The segmentation is based on four types that
are geographical, demographic, behavioural and psychographic. The PepsiCo company
segment their consumer on the basis of age, gender and then products are offered.
 Targeting: This is the second step in marketing model. This is utilised while analysing
the segments with the purpose to develop the desired result and it is targeted on the
profitability, reachability and size. The market for this company is majorly teenagers and
adult.
 Positioning: This step assists the firm to set different strategy from the competitor’s
product. In respect to PepsiCo company, to form the brand, they use functional
positioning.
7

Marketing Strategy for the new business venture
Marketing plan of PepsiCo companies evolve drink
The marketing plan of a company is discussed below:
 Target Market: The have targeted adults and teenagers for the new product. The product
is available to the consumers in three flavours which are most probably liked by the
teenagers and youth.
 Goals: The aim of organisation is to deliver the healthy product to consumer and gain
success for long term.
 Industry trends: The organisation has introduced new plants with the purpose to form
healthy protein drinks (Cagnin, 2018). The organisation is devloping new drinks and
shakes which are healthy and also discover the new ingredients.
 Marketing budget: The company invested 2.3 billion to 3.5 billion dollars for the
advertisement annually.
 Strategies: the main focus is on culture and the emerging markets. The company grows
because of merger and acquisition.
MARKETING MIX
 PRODUCT: The firm give wide range of products. The PepsiCo’s new innovative
product is “EVOLVE” drink.
 PRICE: The price of the good is moderate which can be affordable by consumer. They
give quality goods at reasonable price. The product price is average as the company is
leading in market.
 PLACE: The organisation has strong presence in world. They have a strong network of
distribution.
 PROMOTION: The company give more emphasis on their promotion due to the intense
competition.
Business Sales and Operations Strategy
Sales and operations
The PepsiCo company is using digital platforms withthe purpose to offer the product and
services. With the help of social media platform they can reach to various user. The strategy
associated to sales and marketing is mentioned below:
8

 to attract various customers company can use social media platforms to promote the
products.
 Recurit experience people who can productively give the guidance for business process.
The product give the benefit to the consumer as it helps to increase the immune system
(Cohen and Wirtz, 2022). The organisation gives the facility of online delivery, retail outlet, and
make the product available to the user.
Business Financial Strategy and Risks
With the purpose to develop creative and innovative product, the organisation finds the different
sources to raise the fund. It includes:
BANK LOAN: The oragnisation can take a loan from the bank to develop the product. The bank
gives the loan for long term as well as short term. If the company wants short amount of loan for
short time period, the bank give access of funds. As it is easy to take.
Business risk
When Organisation faces loss and leads to the failure, it is defined as business risk.
 If the good does not lead in the market, then it is a risk for the company.
 The business also face loss when the substitute product is available, then it is a risk for
the company. So the company takes high amount of loan to maintain security.
FRIENDS AND FAMILY: The organisation take the loan from their friends, relatives and
family members. If they want to take the short amount of loan for short duration, then they can
take from their own sources.
Business risk
 If the product does not leader in the market, then it is a risk for the company.
Income statement forecast for the company
9

cash flow statement forecast
CONCLUSION
From the above report it is concluded that the PepsiCo company is one of the leading
multinational company in a market. The company has developed an innovative product,
“EVOLVE” drink. It is a protein drink for which the organisation has introduced a plant. In this
report the various models and framework is applied such as SMART, STP, marketing and
business plan is included regarding the product and company.
10

REFERENCES
Books and Journals:
Andreeva, T., and et. al, 2019. Integration of the quality management and strategic management
systems into unified management system of enterprises. Calitatea, 20(171), pp.3-8.
Cagnin, C., 2018. Developing a transformative business strategy through the combination of
design thinking and futures literacy. Technology Analysis & Strategic
Management, 30(5), pp.524-539.
Cohen, L. and Wirtz, P., 2022. Decision-making style in entrepreneurial finance and
growth. Small Business Economics, 59(1), pp.183-210.
Jena, R.K., 2020. Measuring the impact of business management Student's attitude towards
entrepreneurship education on entrepreneurial intention: A case study. Computers in
Human Behavior, 107, p.106275.
Johnson, E., and et. al, 2021. Effectiveness of multi-disciplinary community respiratory team
management of chronic respiratory illness during the COVID-19 pandemic.
Jungmann, L., and et. al, 2022. Enterprise Applications. In Pro Jakarta Persistence in Jakarta
EE 10 (pp. 51-97). Apress, Berkeley, CA.
Kaplenko, H.V. and et. Al, 2022. INNOVATIVE NATURE OF SOCIAL
ENTREPRENEURSHIP AT THE PRESENT STAGE. Economic Studies, 31(5).
Low, J.S.C. and Ng, Y.T., 2018. Improving the economic performance of remanufacturing
systems through flexible design strategies: a case study based on remanufacturing laptop
computers for the Cambodian market. Business Strategy and the Environment, 27(4),
pp.503-527.
Parra-López, E. and Martínez-González, J.A., 2022. Service Marketing Mix. In Encyclopedia of
Tourism Management and Marketing. Edward Elgar Publishing.
Rosati, A., and et. al, 2019. Long‐term efficacy of add‐on stiripentol treatment in children,
adolescents, and young adults with refractory epilepsies: a single center prospective
observational study. Epilepsia, 60(11), pp.2255-2262.
Wang, P. and Luo, M., 2021. A digital twin-based big data virtual and real fusion learning
reference framework supported by industrial internet towards smart
manufacturing. Journal of manufacturing systems, 58, pp.16-32.
Watts, H.D., 2018. The large industrial enterprise: Some spatial perspectives. Routledge.
Zakharkina, A.V. and Kuznetsova, O.A., 2019. Development of the Instruments for Direct
Financing of Small and Medium-Sized Business: The Legal Aspect. Perm U. Herald
Jurid. Sci., 46, p.651.
11