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Stakeholders of Pepsi (PepsiCo)

Stakeholders of Pepsi (PepsiCo)

This is a detailed analysis of the stakeholders of Pepsi (PepsiCo). There is no doubt that PepsiCo has a diverse group of stakeholders, each with different priorities and needs. It is therefore important for it to understand them well to devise its communications strategy efficiently.

 

PepsiCo’s stakeholders are the people and organisations that have something to gain or lose from its operations. They include but not limited to consumers, suppliers, employees, shareholders, and governments. This article divides them into two groups i.e. internal stakeholders and external stakeholders.

 

Internal stakeholders of Pepsi (PepsiCo)

Leadership team

PepsiCo is led by a leadership team consisting of two units i.e. Executive Officers, and Board of Directors (PepsiCo, 2022). The head of both units is the Chairman & Chief Executive Officer who is supported by several senior executives with varying degree and nature of responsibilities. Members of the leadership team devise the company’s future strategies.

 

Employees

PepsiCo employs around 309,000 people worldwide (Ridder, 2022). These employees are a crucial part of it. Without them, it could not provide the same services to its consumers and other stakeholders.

 

Employees are one of the key internal stakeholders of Pepsi (PepsiCo). They can be found in every part of its business. They perform different roles, and each role is rewarded with unique benefits and development opportunities.

 

Shareholders

Shareholders are the owners of PepsiCo. Organisational shareholders hold most of the shares, as general public (individual shareholders) hold 26% stake only (Nasdaq, 2022). Therefore, the power of individual investors is limited and not strong enough to change policies of the company. On the other hand, any major institutional shareholder may have significant impacts on its strategies and policies.

 

External stakeholders of Pepsi (PepsiCo)

Consumers

Consumers are very important external stakeholders of Pepsi (PepsiCo). They have many different preferences that can impact on its products and brands. They usually buy a product that meets their needs, wants, and desires. They enjoy PepsiCo’s products over one billion times a day globally (PepsiCo, 2022).

 

Consumers are interested in what PepsiCo brings to the market, both new products and new ways of selling existing products. They also want it to be an environmentally friendly and sustainable company. Keeping this in mind and its commitment to the environment, PepsiCo has developed a sustainability strategy that focuses on every stage of its value chain to make use of resources efficiently, reduce greenhouse gas emissions, replenish water, improve its products, and bring back packaging materials.

 

Consumers also care about taste, quality and convenience when buying products from any company. Therefore, PepsiCo is constantly looking for ways to improve its products to meet consumer expectations.

 

Suppliers

Suppliers are also very important for PepsiCo. They are involved in the production of ingredients and products, including any packaging materials or the bottles used to distribute its products. However, they need to be able to deliver raw materials on time and within the quality standards that PepsiCo has set. They also need to be able to help it reduce costs while maintaining high levels of quality.

 

Competitors

PepsiCo competes in the global beverage, and snacks markets. Its main competitors are Coca-Cola, Dr Pepper Snapple Group, and Nestle. These competitors have a large impact on its business performance. Therefore, it needs to maintain high standards of quality in its products. It also needs to be aware of the latest trends in the market to stay ahead of its competitors in terms of innovation.

 

Pressure groups

Pressure groups are groups that lobby for specific policies and laws that can have an impact on PepsiCo’s business. They can be large organisations, or groups of individuals that can influence business practices and policies.

 

For instance, environmental groups have been asking PepsiCo to do more to combat climate change. As a result, the company has decided to reduce the use of virgin plastic. It has developed a new initiative called “pep+” with a view to cutting back virgin plastic use per serving by half across all brands by 2030. It also aims to use 50% recycled content in all its plastic packaging (Cavale, 2021).

 

Governments

Government is the last actor in this stakeholder analysis of Pepsi (PepsiCo). Governments in countries where PepsiCo operates, are interested in its operations. They can bring in new rules and taxes that can impact PepsiCo and its other stakeholders.

 

As a food and beverage manufacturer, PepsiCo can have a significant impact on public health and safety. Its products are often consumed by millions of people every day. So, any safety concerns could have a significant impact on public health and safety. PepsiCo must therefore meet certain legal requirements to ensure that its products are safe and of reasonable quality.

 

Conclusion

To conclude this stakeholder analysis of Pepsi (PepsiCo), it can be said that it is very important for corporations to identify the people and organisations that have an impact on their business strategies and decision-making. By understanding the stakeholders, PepsiCo can better manage their expectations, satisfy them, and reap the benefits of a healthy and diverse business.

 

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Other useful articles:

SWOT analysis of Pepsi (PepsiCo)

 

PESTEL analysis Pepsi (PepsiCo)

 

Marketing mix of PepsiCo (4Ps of PepsiCo)

 

Last update: 07 May 2022

References:

Cavale, S. (2021) PepsiCo to reduce plastic use, launch plant-based snacks in green push, available at: https://www.reuters.com/business/retail-consumer/pepsico-slash-plastic-use-sustainability-push-2021-09-15/ (accessed 04 May 2022)

Nasdaq (2022) What kind of investors own most of PepsiCo, Inc., available at: https://www.nasdaq.com/articles/what-kind-of-investors-own-most-of-pepsico-inc.-nasdaq%3Apep (accessed 06 May 2022)

PepsiCo (2022) Leadership, available at: https://www.pepsico.com/about/leadership (accessed 06 May 2022)

Ridder, M. (2022) PepsiCo’s number of employees worldwide 2013-2021, available at: https://www.statista.com/statistics/536974/pepsico-s-number-of-employees-worldwide/ (accessed 06 May 2022)

Author: M Rahman

M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.

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