Pepsi 2005 Annual Report Download - page 8

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6
Growth is our reason for being. In fact, growth is so much a part of PepsiCo’s
DNA that it’s reflected in our values as our commitment to sustained growth.
Fundamentally, there are two ways for a corporation to generate profitable
growth for its shareholders: by increasing revenues and decreasing costs.
It’s a relatively simple concept, but the longer a company is in business and
the bigger it gets, the more difficult growth is to achieve. And in accomplishing
these most basic — and difficult — priorities over time, the single biggest
contributor to sustained growth lies in how the enterprise consistently delivers
top-line growth and bottom-line performance. Over time, the way a company
delivers growth will define the difference between its success and failure.
PepsiCo Values
“Sustained Growth” means consistent growth for our business as well as our
people — growth year after year.
“Empowered People” is the second piece of that commitment, as the decisions
that drive the business come from tens of thousands of PepsiCo associates
throughout the world who develop, manufacture and deliver our products.
Empowered people act and think in ways that get the job done, and innovate to
find new ways to achieve growth.
“Responsibility and Trust” is the third piece of our commitment. It articulates
that acting responsibly and earning the trust of our shareholders, customers,
consumers and other stakeholders is a necessity for growth. Our growth must
come the right way. It takes a lifetime to build that trust, and a single misstep
can destroy it. Winning is only worth it if is done the right way — acting in a
responsible way that will build trust.
Top Line: Our Competitive Advantages
Growing revenues, or the top line, requires constant care and investment in our
competitive advantages. These are the strengths we bring to the marketplace that
set us apart. These include our quality brands — products known and trusted by
consumers around the world. We constantly revitalize these brands with packag-
ing and product improvements and consumer promotions to keep them strong.
When an opportunity to add new products that complement our portfolio
comes along, we consider building them from within or acquiring new brands
through smaller “tuck in” acquisitions, which can be integrated easily with our
lines of business.
Our ability to innovate is another competitive advantage. We look for
opportunities to capitalize on the value of our brands by creating new products
and varieties. By innovating to meet consumer needs and preferences, we fill
Our Competitive
Advantages:
Strong brands.
World-class innovation.
Powerful Go-to-Market systems.
PepsiCo 22%
Kraft Foods 8%
Coca-Cola
11% All Others
59%
U.S. Convenient Food and
Beverage Sales
% Total Dollar Sales Snacks and Beverages
PepsiCo is the leading convenient
food and beverage company in the
United States.