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Business Today: Investigating PepsiCo

TNC’S contribute to a large part of the world today. They provide us with a range of products for our enjoyment. One of these TNC’s would have to be PepsiCo. Pepsi is located in over 200 countries some of these include Australia, America and China. Their head office is located in New York America, along with their bottling factories which are also located all around America. These factories are where the bottling of the drink happens. PepsiCo also has factories located around Australia.

PepsiCo is a well-known company. They are known for their reputation and their work practices in the offices and factories. Many times has PepsiCo been compared to other major brand like Coca-Cola. In these times PepsiCo and their work ethics have been questioned and compared to Coca-Cola and on several occasions. PepsiCo have come out of these disputes on a high note as they known to have a good reputation when it comes to their code of conduct. PepsiCo is known a well-known company with high morals and high standards of work. Along with PepsiCo owning Pepsi, they also own and make other products such as Gatorade, Frito Lay, Tropicana, Quaker. These products are known all round the world. Each of these companies have their own reputation. Each company have the same standards and work practices as PepsiCo does. PepsiCo is such a well rewound company because the brands that they own make a large range of diverse products giving consumer’s a popular selection of products that can provide for a large variety of people and personalities in different countries all over the world.


Business Today: Investigating PepsiCo However PepsiCo are not all innocent as their advertising styles can have a negative and positive impact on their customers. What makes Pepsi’s advertising so bad? Well you could say that their advertising to an inappropriate marketing range as they are advertising to school children, through the use of vending machines in schools and having television advertisements during popular programs usually viewed their target audiences. This is bad as PepsiCo are influencing young children to drink and eat foods that are unhealthy for you. These advertising campaigns and can have negative impacts on children as they may become more aware of these products so they might be influenced to buy and consume this product more often. This then can lead to a variety of diseases such as diabetes. Pepsi is advertising in schools through the use of vending machines. These vending machines are allowing access for students to PepsiCo’s products such as soft drinks which are high in sugar. These vending machines were unpopular amongst the parents of the students. A poll conducted by the government showed that most parents supported the ban of vending machines and a majority of the votes came from low income families. However there are still vending machines in schools today. These products can also be bought from the canteen/ cafeteria. Not only in a school environment can young children be influenced by the advertising of PepsiCo’s products. At home there are many commercials which are purposely aimed at this target audience so that they can persuade them to try their new and exciting product. Young children will then be surrounded by the advertising of unhealthy foods and soft drinks creating an unstable environment for themselves. PepsiCo also launch their own competitions to attract attention from the media and from viewers. These competitions have a negative impact on audiences as they influence to the viewers to consume more of these “bad” products. These competitions can also have a positive impact on viewers as in can incourage then to take initiative and gain responsibility. Pepsi Cola has changed their products to meet the needs of other countries by changing the use of flavours and sugar used within the drink. Throughout counties in Europe and Japan this is Cleary evident. Japan has Pepsi Azuki, Pepsi Baobab, Pepsi Black, Pepsi Blue Hawaii, Pepsi Caribbean Gold, Pepsi Carnival, Pepsi Dry and Pepsi Ice Cucumber to replace the original Pepsi Cola. These special Japanese Pepsi flavours use Japanese originating flavours and vegetables to create the beverages. Azuki beans, Baobab tree fruit, Pineapple, tropical and less artificial sugars are what is used to replace the original Pepsi Cola. In Mexico, Thailand, Malaysia, and Vietnam, Pepsi Fire was used, which had a strong cinnamon flavour. Pepsi Retro was released in Mexico in February 2008; it is made with natural ingredients, sugar cane and Cola nut extract. This was considered a healthier option. In Canada, Diet Pepsi


Business Today: Investigating PepsiCo Max was released which contained caffeine and ginseng however it encouraged a healthy diet and took no calories.

Pepsi Cola is the world leader in convenient snacks, foods, beverages and has had several positive impacts towards the industry. They follow a code of conduct, which enables them to operate correctly with honesty and with high ethical values. They employ approximately 400, 000 people from a range of diverse countries, to help manufacture their products in a secure, hygienic environment, free from harassment and abuse. All employers are treated fairly and are paid accurately, there is no overtime work and child labour. Pepsi Cola obey all laws and regulations regarding the environment, economy and working standards. Pepsi Cola is also committed to improving the amount of water, packaging and energy usage in their factories. Pepsi Cola markets global food and beverages from a range of 33 brands, each generating $40 billion dollars a year. Pepsi Cola’s Unethical practises have been documented and effect communities globally. Pepsi Cola has come under intense pressure in India regarding the large amounts of pesticides within the Pepsi Cola drink which is being consumed by humans. It has been proved that the large amount of pesticides within Pepsi Cola affect the central nerve system and can be damaging towards pregnant women. The use of pesticides within the Pepsi Cola is illegal within countries, and has been banned in India. The substances and artificial flavourings used in Pepsi Cola are extremely harmful and can increase the risk of cancer, poor immune systems, obesity, heart problems and headaches. The development of Pepsi Cola has affected the environment negatively as factories use a large portion of underground water which is beginning to run out. Groundwater levels in Mehdiganj, India have dropped 7.9 meters (26 feet) in the 11 years since Coca-Cola started its bottling operations in Mehdiganj.


Business Today: Investigating PepsiCo