PepsiCo’s mission statement and vision statement are indicators of the business purpose, strategic direction, and development of the organization in the food and beverage industry. The qualities of the company’s fast-moving consumer goods are based on the stated or implied goals and objectives in the corporate mission and corporate vision. With these considerations, the factors relevant to the SWOT analysis of PepsiCo are connected to how the mission statement determines business activity and how the vision statement sets the long-term goals of the company. Thus, PepsiCo’s vision statement and mission statement provide the basis for the characteristics of the business organization.
As PepsiCo adapts to trends in the global market, the business also adjusts its corporate mission and vision statements. Trends in the food and beverage industry involve aggressive competition, market saturation, and changing consumer preferences regarding business impact on health and society. PepsiCo’s generic strategy for competitive advantage and intensive strategies for growth reflect business responses to such trends in relation to the company’s corporate vision and mission statements.
PepsiCo’s Mission Statement
PepsiCo’s mission statement is “Create more smiles with every sip and every bite.” With this corporate mission, the company establishes a positive image for its consumer goods business. The following are the main points of PepsiCo’s mission statement:
- Creating more smiles
- Beverage products
- Food products
In terms of creating more smiles, PepsiCo’s mission statement shows that the business aims to provide products that have a positive impact on consumers. However, the business purpose of creating more smiles goes beyond this effect on consumers and includes associates, communities, and shareholders. As a result, this point of the mission statement influences PepsiCo’s corporate social responsibility and stakeholder management. The inclusion of associates also means that the corporate mission aims to have a positive impact on the consumer goods company’s human resources. This goal directly affects PepsiCo’s organizational culture or corporate culture and how it influences employee behaviors. Aside from creating smiles, the mission statement specifies “sip” and “bite” to indicate that the business focuses on foods, like Lay’s and Cheetos, and beverages, such as Pepsi and Gatorade. PepsiCo’s strategic goals and objectives for the food and beverage market are based on this corporate mission statement and directly relate to the vision statement’s focus on the same industry.
PepsiCo’s Vision Statement
PepsiCo’s vision statement is “to Be the Global Leader in Beverages and Convenient Foods by Winning with PepsiCo Positive (pep+).” This corporate vision pushes for industry leadership and a positive business impact. The following are the main points of PepsiCo’s vision statement:
- Global leadership
- Beverages and convenient foods
- Winning with pep+
The global leadership goal included in PepsiCo’s vision statement is about making the business a leader in the industry. Achieving industry leadership requires success in a saturated consumer goods market that has high competition according to the Five Forces analysis of PepsiCo. The company competes with Coca-Cola, Unilever, Nestlé, General Mills, Kellogg’s, Hershey, Mondelez, and Mars. The home-brew and instant coffee products of McDonald’s, Starbucks, and Dunkin’ also influence the competitive environment. PepsiCo’s vision statement also specifies business focus on foods and beverages, which is also the focus of the mission statement. Moreover, the corporate vision states using pep+, which prompts the business to develop strategies that benefit the planet and people, including workers and communities. Thus, the leadership goal in the vision statement encompasses the food and beverage company’s financial performance and corporate citizenship. PepsiCo considers its long-term sustainability in this corporate vision statement by ensuring that the business mutually grows with suppliers, workers, and communities.
Implications of PepsiCo’s Corporate Mission & Corporate Vision
PepsiCo’s mission statement provides inspiration to employees and specifies the food and beverage industry. The vision statement also specifies the food and beverage industry, in addition to industry leadership and positive business impact. Thus, PepsiCo’s corporate vision and mission statements are aligned. This alignment helps in creating complementary or similar strategies, goals, and objectives, such as for product innovation, supply chain management, and marketing.
Based on its corporate mission and vision statements, PepsiCo is expected to maintain operations in the fast-moving consumer goods market. Despite the benefits of business diversification, the company will likely limit its operations within its current industry while seeking growth through market penetration or product development. PepsiCo is also expected to keep improving its corporate citizenship status to satisfy the “smiles” and pep+ points of its mission statement and vision statement, respectively.
References
- PepsiCo, Inc. – Form 10-K.
- PepsiCo, Inc. – Mission & Vision.
- PepsiCo Positive.
- Reid, S. E., & Crawford, C. B. (2022). Crafting the Vision Statement. In Entrepreneurial Vision: A Guide for Charting and Implementing the Visioning Process (pp. 263-276). Cham: Springer International Publishing.
- Toh, S. Y., Tehseen, S., Mahmoud, A. B., Cheok, J., Grigoriou, N., & Opute, J. (2022). Mission statement effectiveness: Investigating managers’ sensemaking role. Corporate Communications: An International Journal, 27(2), 329-345.
- U.S. Department of Commerce – International Trade Administration – Consumer Goods Industry.