1. 1. Balance Scorecard The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofits organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. (Source: Balancescorecard. org) Financial Perspective PepsiCo has enjoyed a long history of delivering strong financial growth for shareholders with USD 8 billion was returned to shareholder. Source: PepsiCo Website) 19 brands generating more than USD 1 billion revenue Pepsi is positioned to win in the long term. (Source: Pepsi Annual Report 2010) The underlying performance of Pepsi remained solid despite a challenging macroeconomic environment. A strong performance was delivered by Pepsi with growth in revenues along with increase in net income ensured sustainable performance. For detailed financial analysis please refer section 7 above.
Internal Process Perspective. PepsiCo operates about 100,000 distribution channels and approximately 10 million outlets are regularly served. Major investment in R&D and infrastructure will also be carried out in emerging market in order to sustain long term performance. (Source: PepsiCo Quick Facts) PepsiCo respects humanity`s right to water and other natural resources. That’s why they have invested in research, systems and facilities improvements, all of which lead to decrease waste to landfill, create more sustainable packaging and reduce carbon footprints.
PepsiCo was ranked among Fast Company’s 2011 World’s Most Innovative Companies for their commitment to healthy research and development. Frito?Lay was also honoured in 2010 for the company’s “zero landfill” environmental sustainability goals. (Source: Annual Report 2010, PepsiCo Quick Facts, PepsiCo Strategic Milestones) PepsiCo is investing and taking initiatives to improve and move towards more sustainable crops growing and perk up crop yields. This demonstrates PepsiCo interest for development of agriculture supply chain in emerging markets.
PepsiCo was again included in the Dow Jones Sustainability Index (DJSI World and DJSI North America) in 2010 for our economic, environmental and social performance. (Source: Annual Report 2010, PepsiCo Quick Facts, PepsiCo Strategic Milestones) Learning and Innovation Perspective PepsiCo continued success is dependent on their product innovation, including maintaining a robust pipeline of new products and improving the quality of existing products, and the effectiveness of their advertising campaigns, marketing programs and product packaging. Source: Annual Report 2010) PepsiCo formed a Global Nutrition Group to help grow its nutrition businesses to $30 billion by 2020. The company will be able to strap up Global Nutrition Group, by retaining the operating capability within each sector while centralizing the innovation and development of these increasingly in-demand healthier, wholesome and tasty products. (Source: Annual Report 2010) The brand Gatorade will be delivered via direct?store?delivery (DSD) beginning in 2011 in the U. S. and Canada, enabling a wider variety of products to reach the market more quickly and efficiently. (Source: PepsiCo Strategic Milestones)
The company is exploring innovative with their growers, which would lead to low-carbon fertilizers and also a plan to replace more than 75 percent of their current potato stock with varieties that give greater yields with less waste and The Cool Farm Tool software for measuring carbon emissions. Source: Annual Report 2010) Customer Perspective In order to better serve their customers PepsiCo has successfully completed the acquisition of their anchor bottler which would enable to better service their customers. (Source: Annual Report 2010) PepsiCo has studied the potential of Power of One, as find itself in position to deliver both parts of the equation by serving snacks and beverages to customers simultaneously. Source: Annual Report 2010) With larger distribution network PepsiCo has the potential to meet the needs of their customers swiftly. PepsiCo is being viewed as a premier supplier by its consumers in delivering consumer insight, innovative marketing and supply chain management. In Kantar Retail’s 2010 surveys, PepsiCo ranked among the top two foodservice suppliers in the U. S. and ranked number four among retail customers. (Source: Annual Report 2010)