QuestionQuestion

Read the Article: PepsiCo, Profits, and Food: The Belt Tightens;
1) What is the primary issue facing the firm?
2) What are the secondary issues facing the firm?
3) What is the most appropriate action for the firm?
4) What resources do they have/can they get to do what you suggest?
5) Why should the firm do what you suggest? Why is this a better course of action than alternative options?
6) What are the implications of the strategy you suggest? (i.e. how might your competition, customers or suppliers respond to this strategy)
In your case writeup, you are expected to at least detect one ethical dilemma, identify relevant stakeholders, assess potential consequences to the stakeholders, and develop ethical solutions to the dilemma.
Supporting your suggestion with relevant information from the case is the most important part of this exercise. This is ultimately a logical exercise, so when you come to a conclusion, it should be a reasoned conclusion based on the facts of the case. If you make an assertion, and the paper does not answer WHY you think this assertion is true, you will lose points.

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These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

The primary issue of PepsiCo is both a strategic management concern as well as a major ethical dilemma. The Company is faced with a present and future problem – where does management, under the stewardship of Indra Nooyi, take the Company? Indra has been quite clear with her vision for the Company. In 2011, she is quoted to say that the Company should “grow with the market in fun-for-you and better-for-you.” These are product categories that the Company has advantage over competitors; fun-for-you category includes Doritos and related food brands while better-for-you category includes diet soda brands. Consequently, this is where the main issue presents itself as a strategic management concern. Will the Company remain laser-focused in these product categories to maintain its competitive advantage? However, Indra continued with her vision that the goal of PepsiCo is “to make sure that we grow as fast as the market, or faster”; she was referring to a market with a growth of almost twice as much as the previous product categories. And, it is in this aspect that a major ethical dilemma confronts Indra Nooyi and her team. Depending on who is asked, the growing and prevalent obesity problem in America is partly attributed to PepsiCo and the rest in the food and beverage industry, especially the giants such as Coca-Cola, Dr. Pepper Snapple, and others. Going back to PepsiCo’s ethical dilemma, Indra Nooyi’s vision to grow the good-for-you product category is the Company’s concrete realization of its ‘Performance with Purpose’ sustainable growth plan. To pose the obvious as a question, should PepsiCo really be seriously concerned with the obesity problem of America, and possibly that of the world wherever it decides to operate? Does it not have to be concerned only with operating as a business entity within legal boundaries?
To conclude, does...

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