Pepsi 2015 Annual Report Download - page 58

Table of Contents
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to develop a diverse and engaged workforce).
As we look to 2016 and beyond, we believe our Performance with Purpose strategy will enable us to continue
delivering strong financial results while positioning our Company for long-term sustainable growth. Our
business strategies are designed to address key challenges facing our Company, including: uncertain and
volatile macroeconomic conditions, including unfavorable exchange rate fluctuations and currency
restrictions; geopolitical, economic and social instability; an increasingly competitive business environment
with constantly changing consumer tastes and preferences, including continued consumer focus on nutritious
products and changes in methods of distribution and payment; resource scarcity; and intensifying regulatory
pressures, including changes in tax laws and the imposition of labeling requirements in markets in which
our products are made, manufactured, distributed or sold. See also “Item 1A. Risk Factors” for additional
information about risks and uncertainties that the Company faces. We believe that many of these challenges
also create new growth opportunities for our Company. We anticipate that the challenges we currently face
will continue and we intend to focus on the following areas to address and adapt to these challenges and to
capitalize on these opportunities:
Upgrading our commercial capabilities.
Continued growth of our business remains critical to our success and we remain focused on innovation and
brand building to position ourselves to continue to deliver the types of products our consumers demand and
address increasing regulation of our products, including changes in tax laws and the imposition of labeling
requirements. Consumer demand continues to shift towards more nutritious products and we are accelerating
our efforts to meet this demand by reducing sodium, added sugars and saturated fat in many of our products
while continuing to invest in growing our nutrition businesses. We are also focused on developing new ways
to reach our consumers through innovative digital marketing, social media engagement and content creation.
In addition, as the global economic, social and political landscape remains volatile, with many markets in
which our products are made, manufactured, distributed or sold experiencing unstable conditions, we intend
to address these challenges by continuing to build a portfolio that is balanced across categories and geographies
to navigate short-term volatility and uncertainty.
Building new capabilities.
With consumer tastes and preferences continuing to evolve, we must continue to build new capabilities to
meet the demands of our customers and consumers. To that end, we are focused on increasing our e-commerce
presence and capabilities, continuing to invest in research and development and design to foster breakthrough
innovations and to enhance consumer experiences across our businesses, and increasing our foodservice
presence through new culinary, equipment, product and marketing innovations.
Increasing our focus on reducing costs.
We intend to continue our focus on productivity and lowering the cost base of the Company, primarily by
utilizing our global scale, eliminating duplication, deploying new technologies and capitalizing on everyday
opportunities to lower our cost base. In 2014, we announced a goal of delivering $5 billion in savings over
five years from 2015-2019, and we are on track to do so. We have doubled productivity since 2011, delivering
approximately $3 billion in savings from 2013-2015, and over $1 billion in savings in 2015 alone. To build
on this progress, we continue to identify new opportunities to cut costs, innovating our way to a more
productive future. We are automating our processes for packaging and warehousing. We are making products
for one market on production lines in another, lifting utilization rates and better integrating our global supply
chain. We are enabling engineers to monitor our production systems remotely, resulting in better, faster
solutions at a lower cost. We are also instituting policies that we call “Smart Spending” to control expenses
and are expanding training to minimize waste and boost efficiency.